One of the most talked about changes in this year’s budget was Treasurer Joe Hockey’s announcement of an immediate deduction for small businesses for acquired assets up to the value of $20,000, a generous increase from the current $1,000 threshold. From July 1, small businesses tax will also be cut to 28.5%.
So why is the government so keen to give small business a boost? And if you’re one of the two million small business owners in Australia, what can you do to make the most of the changes in the lead up to the end of financial year?
Urging small businesses to 'have a go'
The $5.5billion small business package designed to stimulate the economy by encouraging small business owners to spend now – anything from “cars and vans to kitchens and machinery,” according to Mr Hockey in his budget speech.
Given 96 per cent of Australia’s businesses are small, they employ over 4.5million people and they are typically able to make purchase and hiring decisions quickly, boosting small business confidence and investment can have a significant and almost immediate impact.