The Federal Budget 2015 has been released but, let’s be honest, not many of us actually have the time to read it from cover to cover. However, if you’re a small business owner it’s important to understand what the budget will mean for you and your business. Below we’ve broken it down for you so you can see what impact the 2015-16 budget will have on small business.
What does the budget mean for small business?
- Offering tax deductions - All small businesses will get a tax deduction for any individual assets they buy costing less than $20,000. This $20,000 limit applies to each individual item. You can apply this $20,000 rule to as many individual items as you want within your small business.
- Reduction of tax rates - The Government is reducing the tax rate for the more than 90 per cent of incorporated businesses with annual turnover less than $2 million. The company tax rate for these businesses will be reduced by 1.5 percentage points to 28.5 per cent. The Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015.
- Making things easier - The Government will reduce red tape within the Fringe Benefits Tax system by expanding the exemption for work‑related portable electronic devices. Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners.
- Assistance for employers - Employers who offer job seekers an ongoing job can receive a wage subsidy with flexible payment arrangements.
Protecting your small business
Small businesses account for 96% percent of businesses Australia wide and are responsible for $330 billion of the economic output each year. Small business also employs over four and half million people. For this reason, there has been an emphasis in the 2015-16 budget on small business and building business confidence.
If you run a small business, you can become more familiar with the highlights of the Federal Budget 2015 by visiting the Government website. Also, it’s a good idea to visit the ATO website to familiarise yourself with the changes to help prepare for tax time.
Remember, if you have a small business it’s important that you have the right insurance in place to protect yourself financially against the unexpected. At Elliott Insurance Brokers, we compare a number of insurance providers to ensure we find the best fit for you. Don’t leave anything to chance – have a chat to your insurance broker today who will be able to advise you on the best insurance package to suit your business needs.
The information above is of a general nature only and should you need advice please consult your insurance broker. Contact Elliott Insurance Brokers on 1300 635 315 today to discuss insurance for your small business or to get a fast insurance quote.