Landry - small business gets biggest tax help in 50 years
EVERY Mum and Dad small business, including Capricornia tradies, sole traders and partnerships will get a tax cut to help boost the local economy.
Federal Member for Capricornia Michelle Landry said tax cuts were one part of a new $5.5 billion Growing Jobs and Small Business package to help small businesses in Capricornia invest more, grow more, and employ more local people.
The Bulletin top headlines
"This budget was the next step in the Government's plan to build a strong, safe and prosperous future for all Australians and help build jobs, growth and opportunity and provide a credible path to budget surplus," Ms Landry said.
"Small business is one of the biggest employers and the engine room of our economy. And this is the biggest small business initiative in our nation's history," Ms Landry said.
- From 1 July 2015, the Government will cut the company tax rate for incorporated businesses with annual turnover up to $2 million by 1.5 percentage points from 30% to 28.5%
- From 1 July 2015, the Government will also provide a 5 per cent tax discount for over one and a half million sole traders, trusts and partnerships which are unincorporated businesses with annual turnover up to $2 million (capped at $1,000, through their end of year tax return)
- And small businesses with turnover below $2 million can claim an immediate tax deduction for every asset they acquire that is valued up to $20,000 for tax purposes - a substantial increase from the previous $1,000 threshold. For example: cars, vans, kitchen equipment and machinery - anything under $20,000 is immediately 100% tax deductable.
Ms Landry said small businesses in Capricornia will have the lowest company tax rate for public and private companies since 1967.
The Growing Jobs and Small Business package will also encourage new business start-ups and entrepreneurship:
- Start-up businesses will be able to immediately deduct professional expenses incurred when they begin a business, such as legal expenses on establishing a company, trust or partnership, rather than writing them off over five years. This will provide immediate cash flow benefits for small businesses;
- The Government is also streamlining the business registration process to make it quicker and simpler to set up a new business.
- The Government will remove obstacles to crowd-sourced equity funding to help promote small business access to finance by increasing the availability of innovative sources of funding
- And from 1 July, expanded tax concessions for Employee Share Schemes will make it easier for small start-up companies to attract and retain the skills and talent they need to grow.
These measures will help encourage investment, innovation and the start-up of new businesses, which will help Capricornia's and Australia's economic future.
Ms Landry said the Growing Jobs and Small Business package will also help employers to take on inexperienced and mature workers.
Further details on the Government's Growing Jobs and Small Business package can be found at www.budget.gov.au