The budget last night squarely focussed their energy on small business as the government looks to harness the SME sector to deliver jobs and growth.
"SMEs are the key drivers of growth, representing most employees and business in Australia. They are primarily Australian owned and more likely to reinvest their earnings in future growth"
Budget initiatives include
- Company tax rate cut to 27.5% for 1 July 2016 for SMES with turnover less than $10m - preciously SMEs were defined as companies of less than $2m!
- Lower rate extended to all companies over the next decade.
- Progress cut to 25 % for all companies by 2026.
- Instant write off for $20,000 capital investment
- Small business tax concessions extended including depreciation pooling provisions, simplified trading stock rules, and PAYG installment payment options.
- Wages subsidies for employers taking on young job seekers (between $6,500 and $10,000)
- Incentives for investors to invest in startups - up to 20pc tax offset
At the same time the interest rate dropped to historical lows yesterday, so funds should be cheaper ! Banks now need to come to the party and make it easier for SMEs to access finance -
In my view the next 4 years will bode well for SMEs in Australia
Do you think the 2016 Federal Budget is good for small businesses?