Small business to reap benefits of Budget

Small business to reap benefits of Budget

The Budget has delivered some long-awaited “good news” for small businesses, according to the Institute of Public Accountants (IPA).

As it promised, the government has delivered a 1.5 per cent corporate tax cut for those small businesses that are incorporated and based on the existing $2 million turnover test, said IPA chief executive officer Andrew Conway.

“Our concern that only incorporated businesses would see such a tax break has been alleviated with non-incorporated entities receiving a tax discount of 5 per cent up to the cap of $1,000,” Mr Conway said.

“This is the first small business tax cut in 13 years, so it is long overdue,” he added.

"We are very pleased, therefore, to see the government [reduce] the tax rate for small unincorporated businesses.”

Mr Conway also labelled the increase in the accelerated depreciation write-off threshold of $20,000 - currently $1,000 and previously $6,500 under the previous government - as “particularly pleasing”.

“Other initiatives revealed at tonight’s Budget include significant reductions in red tape through the streamlining business registration initiative, and a special write-off for new start-up companies to help with professional expenses. We look forward to more detail on how these measures will be administered,” he said.

Small business to reap benefits of Budget
smsfadviser logo
promoted stories

SUBSCRIBE TO THE SMSF ADVISER BULLETIN

Strategy