Federal Government: Small Business The Big Budget Winners

Small business operators in Australia are among the big winners from the 2015/16 Federal Budget handed down by Treasurer Joe Hockey last night.

Tax cuts and incentives were at the core of a new program designed to promote investment and employment among small businesses, with the Treasurer repeating “now is the time to have a go”.

Changes include a new company tax rate of 28.5 percent for organisations with an annual turnover of less than $2 million (down from 30 percent), and unincorporated businesses receiving a five percent tax deduction of up to $1000.

Furthermore, small businesses will be able to immediately claim a tax deduction of up to $20,000 for assets purchased.

The Victorian Automobile Chamber of Commerce (VACC) voiced its support for budget measures aimed at small business, with Executive Director Geoff Gwilym saying “this is a budget for small businesses who want to innovate and grow”.

The VACC was also in favour of new tax laws designed to ensure huge multinational companies can’t escape paying taxes in Australia by shifting profits offshore, and increasing GST revenue from overseas business through the likes of the ‘Netflix tax’ on internet downloads.

But the Chamber expressed disappointment that its pre-budget call for the Federal Government to dump the Luxury Car Tax (LCT) was ignored.

“Ditching the LCT is particularly relevant at a time when the Government is considering the deregulation of new car imports in the name of improving vehicle affordability,” Mr Gwilym said.

“We urge the Federal Government to reconsider relaxing current new car import restrictions and for it to realise that cutting the luxury car tax will do the very thing it is trying to achieve; make new vehicles more affordable for Australians.”

The government did make one small concession on the LCT however, allowing museums acquiring cars for public display to be exempt from the tax on luxury cars.

VACC