How quicker company tax cuts will work

THE FAST-TRACKED BUSINESS TAX PLAN

* Companies with annual turnover of less than $50 million will have their tax rate cut to 26 per cent in 2020/21, then 25 per cent the following year.

* The company tax rate for those businesses has already been reduced from 30 per cent to 27.5 per cent.

* The changes mean small and medium-sized businesses would get a tax rate of 25 per cent five years earlier than planned.

* The original plan was over 10 years. It would have cut the rate to 27 per cent by 2024/25 and 26 per cent the next year before falling to 25 per cent in 2026/27.

* The government claims three million businesses will benefit from the cuts.

* The plan will cost the budget $3.2 billion over four years.

* Legislation to implement the fast-tracked cuts will be introduced to parliament next week.