Running a business is tough at the best of times.
In an environment of uncertainty about the economic future of the country, the government has made boosting the confidence of Australian small business the focus of its 2015 budget.
The Australian Chamber of Commerce and Industry (ACCI) was quick to come out and endorse the key initiatives of the budget, believing they will give small businesses “the confidence they need to grow, invest and hire new staff.”
Kate Carnell, CEO of the ACCI, said: “This budget recognises that it is business, not government, that generates wealth, creates jobs and grows the economy. It shows the government has heard the message of the chamber movement’s Small Business. Too Big to Ignore campaign.”
The “Jobs and Small Business Package” is expected to help the estimated 2 million small businesses in Australia, and the millions of people they employ, with over $5.5 billion in new tax relief and reduced compliance costs.
The government will implement a 1.5 per cent company tax cut for small businesses it had previously announced earlier in the year. Companies with turnover under $2 million will be eligible for this cut, and a 5 percent tax discount to be worth up to $1,000 a year will be available for other businesses.
There is now an immediate tax deduction for assets up to $20,000 until the middle of 2017, with the government putting no cap on the amount they are prepared to spend.
Small business work-related portable electronic devices will become fringe benefits tax free in an effort to reduce red tape. The government will also be streamlining business registration processes and the removal of obstacles to crowd-sourced equity funding.
Ms Carnell went on to say they should move quickly to bring legislation to the Parliament to enact the initiatives laid out in the budget.
“We welcome these small business measures and encourage the Opposition to support them.”