The Turnbull Government's 2017 Federal Budget delivered a raft of benefits for Australia's small business sector.
Small business have plenty to celebrate following the release of the 2017 Federal Budget. We shine a spotlight on the key initiatives impacting the small business sector.
Extension of instant asset write-down
The popular instant tax write-off that applies to newly purchased business assets costing less than $20,000 has been extended for another year.
Initially scheduled to end on 30 June 2017, the extension of the instant write-down scheme means small businesses will now be able to claim an immediate tax deduction on the purchase of assets (new or second-hand) costing under $20,000 up until 30 June 2018. It's a move that will help to encourage investment by small enterprises.
Small businesses also will benefit from a reduced tax burden after the Government recently secured tax cuts for around 3.2 million small and medium Australian businesses.
These tax cuts apply immediately for businesses with annual turnover less than $10 million, with the tax rate for companies cut to 27.5 per cent – the lowest level in 50 years.
Cutting red tape
The Commonwealth Government is strengthening its regulatory reform agenda to encourage small business growth and innovation. The National Partnership on Regulatory Reform has committed to provide up to $300 million to States and Territories to remove unnecessary regulatory barriers.
Lowering energy costs
The 2017 Budget also contains measures designed to boost energy security – a step that will be a plus for small businesses facing rising energy bills.
The fresh initiatives include a $90 million plan to expand gas supplies, a possible Commonwealth buyout of an expanded Snowy Hydro scheme, and up to $110 million for a solar thermal plant at Port Augusta as well as ongoing monitoring of gas and electricity prices by the Australian Competition and Consumer Commission.
New levy on working visas
On the downside, small businesses that use temporary visa workers will have to pay more as part of a new visa tax designed to fund training for local employees.
Businesses with turnover below $10 million will pay a levy of $1,200 per overseas worker per year when sponsoring under the upcoming Temporary Skill Shortage (TSS) visa. A levy of $3,000 per overseas worker sponsored for permanent residency will be required. The levies will be introduced from March 2018.
The upside of this new levy is that it should encourage training and employment of local workers, which should provide an uptick to the domestic economy.
A good time to invest
The bottom line is that the small business sector now has considerable support from the Federal Government, and the time to invest in the growth of your own enterprise is now.
Your Mortgage Choice broker is well placed to help your small business reach its full potential with a range of competitively priced asset finance options. Call your Mortgage Choice broker today to discover the funding strategy best suited to achieve your business goals.