‘We’ve delivered’: More tax cuts on the cards as small business scheme extended

Tax cuts could be on offer in the looming election as the government expands its business loan scheme in the lead-up to Christmas.

Australians could receive more tax cuts in the coming months as the government ramps up its economic boosters in the wake of reopening borders.

Treasurer Josh Frydenberg would not be drawn on Monday morning as to whether more tax cuts could be part of the next budget, set to be unveiled in March in the lead-up to the election.

“I’m not going to add to that speculation … but we’ve delivered for the Australian people,” Mr Frydenberg told the Today show.

“We saw in the September quarter alone more than $10bn in tax relief go to more than 11 million Australians. We’ve seen small business taxes come down to their lowest levels in more than 50 years.

“At every turn, at every step of the way throughout this crisis, the Morrison government has been there for Australian families and businesses.”

Treasurer Josh Frydenberg has announced an extension of the small-and medium-sized business loan ahead of the mid-year budget review. Picture: NCA NewsWire/Sarah Matray

It comes as Mr Frydenberg announced overnight that the government was extending its Covid-19 loan scheme for small and medium-sized businesses for the third time.

But the current 80 per cent government guarantee will drop to 50 per cent. An expected 24,000 small businesses could take up the loans, capped at $5m each.

Mr Frydenberg told ABC Breakfast that the loans had been “very, very helpful to date” and the extension would result in “billions of dollars” flowing into the economy.

“These loans can be used to refinance existing loans or go and purchase new equipment or fit out a production line,” he said.

“It’s not free money … It’s actually allowing businesses to back themselves to grow, to hire, to innovate.”

Mr Frydenberg has not ruled out tax cuts in the next budget, likely to take place in March ahead of a May election. Picture: NCA NewsWire / David Geraghty

With Queensland’s border finally reopening to fully vaccinated NSW, Victoria and ACT residents on Monday, and Western Australia set to finally reveal its pathway, Mr Frydenberg is hopeful border closures will now be a thing of the past.

“This (the Queensland border reopening) is a great Christmas present for thousands of Queensland tourism businesses,” he said.

“Queensland’s economic success is vital to Australia’s economic success … And we need to learn to live with Covid.

“I certainly hope (we have seen the last of border closures). We know that the Omicron variant is not the first, nor the last variant that we will probably see in respect to Covid.

“We also know that the vaccine has proven to be a very effective defence against the virus … I’m very hopeful that state premiers will stick to the plan, keep their borders open, and allow Australians to be reunited at Christmas and businesses to flourish.”

Mr Frydenberg will deliver the government’s half-yearly budget update on Thursday.

Originally published as ‘We’ve delivered’: More tax cuts on the cards as small business scheme extended