It has been announced that the budget will benefit tax cuts, new roads and rails and the craft brew industry, but what is in it for small businesses?
The Government has introduced a seven-year personal tax cut package including sole traders and family partnerships, if the changes are passed, millions of Australians will benefit from next year’s proposed changes.
Low Income Earners – more money to spend!
From next July those who earn up to $37,000 could see their tax bill reduce by $200. This can be an advantage for small business owners as this means more money in people’s pockets, which means more spent in business which is great for the circulation of the economy.
Corporations – no win
However, corporations missed out on any tax relief, meaning they will have to wait for the government’s existing 10-year plan to get approved in parliament before they see any cuts.
Small Businesses under $2 Million in Revenue – $20k Asset write-off
Australian small businesses bringing in less than $2 million in revenue will benefit from the government expanding the $20,000 instant tax write off beyond the 30 June 2018. Businesses bringing in less than $2 million in revenue can take advantage of the instant tax write off for new purchases after the end of the current financial year. The extension of the instant tax write-off scheme means that businesses can plan for future asset purchases as some small businesses do not have the funds to take advantage of the scheme immediately.
Other priorities in relation to business were small focuses on Employment and cross skilling of older workers. There’s no doubt this is a pre-election budget.
Here’s to continuing to build successful businesses and empires in 2018/19!
My personal view on this year’s budget is it’s an optimistic budget.
I’m especially excited about the budget repaying our country’s debt, not the interest on the debt. I’m impressed the budget forecast is to be in surplus by 19/20, as promised by Treasurer Scott Morrison, which is not very far away. He must’ve read the Barefoot Investor too!
As an occupational pain point of mine being a tax professional and running a bookkeeping practice, is the obliviousness on individuals, small businesses and corporations not declaring their tax correctly. The ATO is taking their position on this, evolving and doing their due diligence incorporating with digital business practices we now have today. Our federal government is too with a crackdown on limiting cash payments for purchase goods and services up to $10,000.00 to courter tax evasion and the black economy.
Now is the time to stop putting your head in the sand about the tax you owe and start a conversation with a tax professional today to start relieving this stress and operating a business honourably and professionally and good things will come to you and your business.
Call me today on 0411 555 136 or book a time here to talk tax and business: https://calendly.com/balancebooks/15minutephonecall