Do you want to start your own business? After the budget announcements recently, this might just be the right time to do it. The budget announced changes that impact directly on small businesses. A small business for these purposes is expected to be a business with annual turnover of less than $2 million:
- From 1 July 2015, business with an annual turnover of less than $2million (and let’s get real, we’d be stoked if we earn $2 million in our first year!) will get a 1.5% tax cut to 28.5% but only if your business structure is a company;
- Unincorporated businesses with annual turnover less than $2 million, there is a 5% tax discount
- Starting from budget night, small businesses can immediately receive a tax deduction for any individual assets purchased that cost less than $20,000. In effect, a very accelerated depreciation! It isn’t capped at only one asset, you can apply this rule for all purchases costing less than $20,000. We are not sure how long this will be effective for but at least the next year.
- There is a removal of fringe benefits tax on mobile devices
The aim of all of this – to encourage small businesses to invest in their businesses.
So if you are a small business, speak to your accountant about how these changes can benefit you! If you are thinking about setting up your business, this is as good a time as any!
Nicola