Budget boost for small business

Small business scored big wins in the Abbott government’s second budget.

As previously foreshadowed, small companies with turnovers of less than $2 million from 1 July will have their tax rate lowered from 30 per cent to 28.5 per cent. The cut is worth $3.3 billion over the next four years.

Mr Hockey said this was the lowest small business company tax rate in almost 50 years.

“We are giving you back more of your own money,’’ Mr Hockey said.

Fringe benefits tax on all portable electronic devices used for work, such as mobile phones and laptops will be abolished.

Mr Hockey said that small business will be able to claim an immediate tax deduction for each item purchased up to $20,000, something that can cover anything from cars to machinery.

The government is also giving an annual 5 per cent discount of up to $1000 a year for unincorporated businesses including tradies and sole operators. That is worth $1.8 billion over the next four years.

Source : Business First Magazine  13th May 2015