Franchise tax revenues hit a record low in 2021 with $1,073.3 million less than forecast, according to the Department of Finance.
The financial statement released today shows the revenue was $1 billion below forecast.
A total of $9.6 billion was also allocated to the State Government’s Franchise Tax Reduction Fund.
While the Department expects revenue to rise in 2022, it says this year’s forecast of $2.2bn was more than forecast.
A number of new initiatives are also underway, including the National Franchise Tax Relief Scheme, which aims to cut the cost of franchise tax for low and medium income households.
It is estimated the scheme will generate $2 billion in savings to businesses and households.
The State Government will continue to encourage business investment through incentives for investment and tax breaks, including a one-off tax relief on up to $10,000 of sales in new businesses.
For businesses with turnover below $10 million, the State’s Franchise Revenue Allowance will be doubled to $2,000 per year.
Franchise tax revenues will also be significantly reduced for businesses with more than $20 million in turnover in 2021.