Small business gets billions in 2015 budget as Hockey urges Australians to “have a go”
It comes on the heels of a much anticipated budget for small business, as the government promises a $5.5 billion package to help more than 2 million small businesses.
Within the package proposed by Treasurer Joe Hockey is an ability to instantly deduct any asset that costs less than $20,000, which is a large increase from the current $1,000 threshold.
This 2000 percent increase on the value threshold means things like cars, vans, machinery – anything bought for the business – will now be 100 percent tax deductable.
From July 1 all small businesses will receive a company tax cut of 1.5 percent.
In an article with the ABC Hockey said that this offers a sense of small business confidence and an opportunity for job increases in the future.
“This is where the jobs of the next decades will be.”
According to the government, this year’s small business package is the biggest the nation has ever seen.
Start-ups see a change in their registration as the initial process is streamlined with an appointed website acting as a one-stop shop for setting up the business.
Additionally, start-ups will be able to immediately deduct expenses such as legal fees and creation costs incurred when setting up a brand new company.
In a nutshell: what does budget 2015 mean for small business?
– Immediate tax deduction for assets costing less than $20,000
– $1.2 billion subsidies for employers who hire particular, specific groups of job seekers
– $330 million offered for training programs supporting young people to become job and workforce ready
– A streamlined business registration process
– A 5 percent tax discount for unincorporated businesses that’s capped at $1000