Joe Hockey wants to be your friend and he has certainly delivered to small businesses in last night’s budget announcement!
The generous concessions announced are aimed at empowering small businesses just like yours to “invest, grow and create jobs”.
Your annual business turnover needs to be less than $2million to be eligible for the following tax cuts, from what is being spruiked as “the biggest small business package in Australia’s history”.
Business Assets < $20,000
Other good news from the budget include:
Although not announced in the Budget last night, SuperStream is mandatory for all employers making super contributions, APRA-regulated super funds and self-managed superannuation (SMSFs) fund receiving contributions. If a business has 20 or more employees, it must comply with SuperStream by 30 June 2015. If a business has 19 or fewer employees, SuperStream applies from 1 July 2015, and must comply by 30 June 2016.
With 6 weeks left of the financial year, now is a great time to be working with your accountant to devise tax planning strategies to reduce your tax for the 2015 year and potentially the 2016 & 2017 years. Given that the immediate asset write-off will be effective for the next three tax years, there is no need to be hasty in making large purchases that may cause a cashflow crisis, but rather a planned, strategic approach is required.
Your accountant will be able to review your business’s current & projected levels of profitability and this combined with your future goals and plans for your business will be able to appropriately plan to invest in more assets, grow your business more and potentially employ more staff.
If you have MYOB accounting software, upgrade your accounting system and start enjoying the benefits. A good accounting system like MYOB will provide you with the ability to manage your books effectively and stay compliant with all the tax changes announced in the Budget last night. Whether you need easy, online accounting like MYOB Essentials, or want the power, control and flexibility of AccountRight.
Joe Hockey has said he wants to “energise small business”. I believe that the small businesses that will be energised and benefit most from this budget will be those that take more control. I mean control across all areas of their business – operationally and financially.
Now is your time to thrive and take advantage of the Government’s 2015 budget initiatives to capitalise and further build your small business to be a profitable, rewarding and fun business. Who knows you may have bigger aspirations, your small business could be end up becoming a big business!
The changes in the Federal Budget will affect every business on July 1. Subscribing or upgrading your MYOB software will ensure your business is always compliant with tax changes, including the government’s new SuperStream system for paying super contributions.