What the Federal Budget means for small businesses
Friday, May 13, 2016
Are you an SME trying to work out what’s going on with the Federal Budget? We drill down to bring you the main points to be aware of.
The 2016 Federal Budget has placed considerable focus on small and medium sized businesses – and it’s been mostly good news, although the extension of the instant $20K asset tax write-off failed to emerge.
What’s changed?
- The term ‘small business’ is being redefined to mean a business with under $10 million turnover, rather than under $2 million.
- As a result of redefining the meaning of ‘small business’, more are eligible for the $20,000 instant asset write-off.
- There are some modest tax cuts for small businesses – from July 1 2016, SME’s will benefit from the company tax rate lowering to 27.5%.
- A boost to the New Enterprise Incentive Scheme (NEIS) means there’s an extra 2300 NEIS places to help jobseekers start businesses.
- The new Youth Jobs PaTh program will provide interns with a wage subsidy ($200 per fortnight), and businesses that take on interns with an upfront payment ($1,000).
What are your thoughts on the 2016 Budget? Do you think the changes will help you and your business? If you run an SME, we’d love to hear from you. Contact us today.
