A new financial year means a new budget! This year the government has made some changes they believe will help SME in the new fiscal year. The most notable are the extension of the $20,000 instant asset write-off. Businesses with an annual turnover of up $10 million will now have until June 30, 2018, to immediately deduct eligible assets up to the value of $20,000.
One of the big surprises in the budget was the bank tax levy. The new tax will only apply to banks with liabilities of at least $100 billion. This means only the Big Four — Commonwealth Bank, National Australia Bank, Westpac and ANZ — plus Australia’s fifth biggest lender, Macquarie.
The big banks are claiming that this will mean an increase of costs that will be passed onto the consumer. These measures have been put in place to reduce the current deficit. Yet it is leaving many with a feeling of scepticism
The big banks are claiming that this will mean an increase of costs that will be passed onto the consumer. These measures have been put in place to reduce the current deficit. Yet it is leaving many with a feeling of scepticism
Other outlined changes according to the Smart Company are –
– A 12-month extension to the $20,000 instant asset tax write-off scheme;
– $300 million in funding for state and territory governments to reduce red tape;
– $100 million in funding for advanced manufacturing and scientific research;
– The establishment of a new national skills fund to train and support apprentices;
– An extension to the crowdsourced equity framework to include proprietary companies; and
– Scholarships and study hubs for students in regional Australia.
The budget also includes:
– A “major” bank levy and tougher rules for banks and other financial institutions;
– Increased penalties for businesses and individuals that breach Australian Consumer Law;
– Stricter rules around capital gains tax concessions for small businesses; and
– More funding for the Australian Taxation Office to crack down on the black economy.
According to the budget overview, “small business owners have gone without to keep their businesses open and their employees in jobs.” The outlined budget changes are meant to rectify this economic imbalance.
As with all changes in the budget, only time will tell as the success or viability of the proposed schemes on the future of small business in Australia.
