“Small and medium businesses are driving jobs growth in Australia and must continue to do so. They are also overwhelmingly Australian owned and more likely to reinvest their earnings in future growth, as they seek to build their businesses.” Honourable Scott Morrison MP, Treasurer of the Commonwealth of Australia.
If you haven’t already caught up with some of the implications for SME from the Federal Budget, we provide a quick rundown of benefits to business owners.
- Company tax rate cut to 27.5% from 1 July 2016 for turnover less than $10m
- Lower rate extended to all companies over the next decade
- Progress cut to 25 % for all companies by 2026
- Instant write off for $20,000 capital investment
- Small business tax concessions extended including depreciation pooling provisions, simplified trading stock rules, and PAYG instalment payment options.
- Wages subsidies for employers taking on young job seekers (between $6,500 and $10,000)
Significantly, the changes include a new definition of SME which is businesses with less than $10m turnover (was previously $2m) and if this applies to all treatments, then many more businesses are now entitled to these “benefits.”
With interest rates at historical lows, funding business growth should be more accessible and cost effective.
Opposition Leader Bill Shorten’s Budget Reply did not vary greatly from the Federal Budget itself and with the election on July the 2nd this is now the focus for all parties.