If you run a small business with an annual turnover of under $2 million, this year’s Budget is designed to help you thrive, with a range of new tax savings concessions and incentives.
Tax savings for small business
The Government has announced a tax cut of 1.5% for incorporated business (those structured as companies) from the 2015–16 financial year, reducing their company tax rate to 28.5%.
From the same date, sole traders and other individual taxpayers running unincorporated businesses are set to benefit from a 5% tax discount, to a maximum of $1,000.
Small business owners will also be able to buy multiple assets worth up to $20,000 and claim a 100% tax deduction, effective immediately — from Budget night until 30 June 2017.
Those who invest in assets costing $20,000 or more will also be able to claim depreciation at an accelerated rate — 15% in the first income year and 30% each income year thereafter.
And if you’re starting a new business after 1 July 2015, the Government has proposed an immediate deduction for the costs of professional advice in getting it up and running, including tax, legal and accounting advice.
Colonial First State Newsletter Edition2 2015.