Small Business Budget Wins

Written on the 17 May 2015 by Danielle MacInnis

Big Wins for Small Business! $5.5 billion for over 2 million small businesses.

The Federal Budget for 2015 has a lot for small business to get excited about.

• As expected, the tax burden for small business owners - those with annual turnover under $2 million - will be lowered to the tune of 1.5 per cent, costing the Government $1.45 billion. For example, a company with an annual turnover of $1.3 million and a taxable income of $200,000 will be $3000 better off. According to the government, 96 per cent of Australian businesses will be eligible for tax relief.
• For smaller, unincorporated businesses - sole traders, partnerships, trusts, etc - there will be a 5 per cent tax discount. For the roughly 1.7 million tradies, sole operators, partnerships and other unincorporated small businesses who don't pay the 30 per cent company tax rate, the government is offering a 5 per cent tax discount of up to $1000.
• To help small businesses invest in new tools or machinery the Government will provide an immediate tax deduction of all assets under $20,000. This can apply to as many items as you like ovens, coffee machines, lawnmowers while any assets over $20,000 can be pooled together and depreciated at the same rate. Small businesses can buy as many items under that amount as they like and receive that deduction on each one, starting from budget night.
• To encourage businesses to employ young people, employers can access up to $6500 in wage subsidies over 12 months.
• For start-ups, business registration will be streamlined, with one website acting as a one-stop-shop for setting up a business. Start-ups will also be able to immediately deduct expenses such as legal fees they incur when setting up a new company.
• Fringe benefit tax on electronic devices
• The Government is set to profit from overseas businesses supplying digital products and services to Australians, which will be subject to GST from July 1, 2017. This means that local businesses products will be more attractive.

Maybe it is time to start evaluating your marketing and allocate some funds to improving your business for next year?