Written by Anne Miller
Thursday, 13 May 2010 05:56
Federal Budget – What’s In It For Small Business?
The 2010 Federal Budget may not have excited the pundits but there’s a few points which small and medium businesses owners should note.
Most are a direct response to the Henry Review of the Australian taxation system.
1 . Superannuation: Super Guarantee contributions will increase by 0.25% in 2013-14 and 2014-15 and then by 0.5% per year until the Super Guarantee reaches 12% by 2019-20.
2. Reduction in company taxation: The company tax rate will be reduced from 30% to 29% for the 2013-14 income year and to 28% from 2014-15. Eligible small businesses will benefit from the reduction to 28% from the 2012-13 year.
3. Assets write-offs: Small businesses can now immediately write-off assets valued at under $5000 (up from $1000 – although the Henry Review had recommended this be lifted to $10,000). Other assets, with the exception of buildings, can be written off in a single depreciation pool at a rate of 30%, eliminating the need for small businesses to do complex tax classifications of different types of assets.
4. New business name register: The Federal Government will spend $125.2 million over the next eight years to create a single national online register for business names and ABNs, replacing the current State-based registration system.
5. HP agreements & GST: Small businesses that account for GST on a cash basis will be allowed to claim input tax credits upfront in relation to hire purchase agreements.
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