There was lots of speculation leading into this year’s Budget about exactly who would be the major winners – and the good news for small business owners is that they were tipped to receive significant support.This support was delivered, as Joe Hockey last night revealed the biggest small business package in Australia’s history. It’s a strong statement that the government is standing behind the much used rhetoric that small businesses are the ‘engine of the Australian economy.’
As a small business owner, you need to be clear what this means, where you can save money and what new legislation you are able to take advantage of.
Here’s what you should note:
If you’re thinking of becoming a start-up…
- Your business registration process will now be streamlined into one website where you can organise everything in one place. This is designed to cut the red tape for start-up businesses and allow a greater focus on core business processes
As an existing start-up or small business…
- Small businesses with annual turnover below $2million will have a 1.5 percentage point cut in company tax to 28.5 per cent. This business tax cut is expected to benefit about 780,000 incorporated businesses and ultimately will give you more money to plough back into your business (or keep in your pocket!)
- Additionally, tax breaks are on offer for purchases up to $20,000, again for businesses with a turnover of less than $2million. This is a serious increase from the previous $1,000 limit and one that you must remember when you’re thinking about purchasing equipment – it might be a new computer for your trade service office or oven for your kitchen if you’re in the catering business
- Small businesses can now buy multiple electronic devices for employees without paying Fringe Benefits Tax (FBT). Pre –budget, only a laptop or a tablet, for example, was deductible – now you can purchase both
- If you’re in Northern Australian businesses (NT,QLD and WA north of 26° latitude) and have a business supporting the development of infrastructure you can request access to $5million loans
- If you hire jobless or older workers you may be entitled to wage subsides, designed to help encourage businesses to hire these employees
It makes sense to take advantage of what you can from this year’s announcement and use all current measures to consolidate and grow your business. Ask a person or organisation you trust to help you practically implement the changes.
Small businesses are the heart of the Australian economy employing an estimated 4.8 million people, and hopefully many will find opportunity in this budget announcement to support business growth as the financial year draws to a close.
Provided by Forum Group, a managed-services company that provides innovative solutions to business challenges. The company offers a range of services including Managed Print, IT and Communication Solutions: Vehicle Fleet Monitoring and Environmental Solutions that include energy and fuel optimisation.