2015 Federal Budget

CBM Corporate / Latest News / 2015 Federal Budget

The Right Time for Business to Invest.

The government is creating the right environment at the right time for a Small Business to invest.

 

Please see an Executive Budget Summary (below), on new benefits to Small Business owners.

Accelerated Depreciation.

All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000. (Currently, the threshold sits at $1,000).

 

This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. These arrangements start from Budget night and continue until the end of June 2017.

Tax Cuts

The Government is reducing the tax rate for the more than 90 per cent of incorporated businesses with annual turnover less than $2 million. The company tax rate for these businesses will be reduced by 1.5 percentage points to 28.5 per cent.

 

To help all Australian small businesses grow, the Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015. This delivers a tax cut of $1.8 billion over the next four years.

Cutting Red Tape

The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by

expanding the FBT exemption for work related portable electronic devices. This will help small business employees stay connected in the digital economy.

 

Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners.

Wage Subsidies to Support Employment

Employers who offer job seekers an ongoing job can receive a wage subsidy with flexible payment arrangements.

Work Experience for Young Job Seekers

The Government will provide $18 million over four years for around 6,000 job seekers annually to undertake valuable work experience for up to four weeks while they continue to receive income support.

Youth Employment Strategy

The Government will provide over $330 million to implement a Youth Employment Strategy to improve employment outcomes for Australia’s young people and make it easier for them to enter the workforce. Otherwise, Australia risks losing too many to long-term unemployment.

Moving Job Seeker into Work

The Government will provide over $330 million to implement a Youth Employment Strategy to improve employment outcomes for Australia’s young people and make it easier for them to enter the workforce. Otherwise, Australia risks losing too many to long-term unemployment.


 

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of a client’s specific circumstances.

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