Australia’s 2 million small businesses appear to be the big winners in the #2015budget.
Small enterprises are being encouraged to go out and invest in their businesses through these measures:
- You can claim an unlimited number of tax deductions for buying cars and machinery valued at less than $20,000 each. As long as it’s not stock, businesses can claim almost any item.
- A Tax discount of 5 per cent for small unincorporated businesses (including sole traders). Capped at $1,000.
- From July 1 this year, companies who have an annual turnover of less than $2 million will have their tax lowered from 30 per cent to 28.5 per cent. (a tax cut of 1.5%).
- Removal of fringe benefits tax on mobile devices.
The package will also give funding to start-ups and entrepreneurs. This includes allowing small businesses to change entity structure – such as a sole trader to a trust – without getting hit with capital gains tax and allowing you to immediately deduct legal and tax advice associated with starting a new business. There are also changes, to be announced, about making it easier for businesses to use crowd funding platforms.
Then there are measures aimed at helping employers take on unemployed job seekers and help disengaged youth to become job ready.
Based on the budget are you likely to spend more?