This week’s Federal Budget has several implications for Australian small businesses. The key changes see an increase in the asset write-off threshold from $25,000 to $30,000, lower tax rates and an easier process for SME’s to resolve tax disputes.
Below we’ve outlined these three key changes which aim to help small businesses in 2019 and beyond.
Asset write-off
Need to buy a new coffee machine? What about new tools? The increase in the asset write-off threshold allows SME’s to make a deduction every time an asset is purchased under the amount of $30,000. This is aimed to help SME’s grow, reinvest and employ more workers.
Businesses turning over less than $50 million are eligible for the write-off (up from the previous $10 million) which will affect around 22,000 businesses.
Lower tax rates
The good news doesn’t stop there, SME’s could also benefit from the fast tracking of the company tax rate cut which will have a direct link to boosting cash flow and hiring employees. The rate is coming down from 27.5 to 26 next year and will be cut again to 25% beginning in 2021.
Small Business Taxation Division
Need to resolve a tax dispute quickly? A new team has been assembled to specifically manage tax disputes for me SME’s. Having a dedicated team will essentially make it easier, cheaper and quicker to resolve tax disputes. The benefits that have been outlined include, lower application fees, individual case managers and faster decisions made with disputes.
To fully understand the impact the 2019 federal budget will have on your business, refer to the Australian Government’s 2019 Budget Website.
