Small and medium-sized businesses are the lifeblood of the Australian economy. With the new budget for 2018/19 tax year, there are a few perks for businesses in this category.
$20,000 Instant Asset Write-Off
The instant write-off has been extended for a further 12 months. This means businesses can continue to claim a deduction for goods costing up to this amount until 30 June 2019. This includes assets such as computer equipment and servers.
Research Grants And Funding
The following grants and funding opportunities were announced, most notably there will be additional funding for emerging technologies and sustainability –
- $1.9 billion over 12 years in scientific research infrastructure.
- $20 million in SME Export Hubs, in a bid to foster greater collaboration between businesses and identify new export opportunities.
- $200 billion investment in defence over the next 10 years, and a new Sovereign Industrial Capability Grants Program worth up to $17 million annually to help SMEs in the defence sector buy essential equipment.
- Additional funding for the fintech sector (amount unspecified).
- Reform of the Research and Development Tax Incentive, including greater transparency of eligibility requirements and claimants.
- $200 million for a third round of the Building Better Regions Fund to support regional infrastructure.
- The creation of a $20 million National Forestry Industry Plan to protect the forestry industry and its 67,000-strong workforce.
- $140 million for the Australian film industry.
An additional $250 million will be added to the Skilling Australians Fund, which supports vocational education and training to upskill Australian workers.
GST Reporting Reform
By streamlining GST reporting the government claims it has delivered an average of $590 annual cost saving to SMEs by reducing the number of BAS GST questions to three from 20.
While we can’t give tax advice we can assist with purchasing or upgrading your equipment. Reach out if you require assistance, we are always happy to help.