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.
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