When the Federal Budget rolls around every year, it is always interesting to find out what industries and sectors are going to win out. So in case you missed it, this year was no different and saw the Abbott government launch many surprise ventures in order to appeal to the business community.
Small businesses, in particular, were one of the many winners from the budget with the government claiming that it was about energising the sector and helping them to grow to their potential.
At Oncore Services, we are all about assisting entities and as such have complied some of the highlights from this year’s budget announcement.
Taxes are often the Achilles heel of the business community – preventing many organisations from growing. However, less tax compliance is on the cards in the coming years.
From July 1, 2015, businesses with annual earning under $2 million will see a 1.5 percentage point drop in company tax. This will see the rate for incorporated businesses fall to 28.5 per cent from the current 30 per cent.
While this was widely expected before the formal announcement, this should prove vital for many small Australian businesses. Owners will also get the same cut from on the personal income tax that they pay on earning from their business.
Purchasing assets is the best way to grow a business. However, the requirement to pay tax can be a significant downside to this approach. It is then pleasing to report that all small businesses will get a tax deduction on all assets bought for less than $20,000.
In the past, this deduction was only applied to assets under $1,000, but the government has seen a need to improve this area of tax legislation.
Coming into effect from now until 2017, these deductions could apply to anything from vehicles, tools, IT equipment, contracting software or new office space. It is important to note that there are no restrictions on this clause so businesses can invest as many times as they choose over the coming years and enjoy the positive tax deductions.
How can Oncore Services help?
Oncore Services have a long and established history in helping businesses and recruiters compete in the market. While these changes in the Federal Budget should make a difference, complementing them with assistance from Oncore could be the long-term solution.
For more information about our offerings, contact our expert team today.