Treasurer Scott Morrison has delivered the 2018 Federal Budget, in his speech he made a point of stating that the Turnball Government is “backing businesses to invest and create more jobs, especially small and medium-sized businesses”. So, what do small businesses actually have to look forward to? See below to find out how the Federal Budget will affect your business!
Instant Asset Write-Off Extended
We asked, and they actually listened: A survey of 1,000 small business owners conducted by Reckon found that 91% said that they wanted the Government to extend the $20,000 instant tax write-off beyond 30 June 2018. So, low and behold, instant tax write-off for businesses with an annual turnover of up to $10 million has been extended for another year.
SME Export Hub
This is our favourite! The Government is aiming to help businesses go global by investing $20 million in SME Export Hubs. Previously, small businesses have been importing more than exporting – by helping them go global the Australian Government will further unlock their economic potential. Next step, world domination!
Simplified BAS – Better than a kick in the teeth!
The Turnball Government has simplified Business Activity Statements by reducing the 20-question requirement down to 3 questions. This is expected to save small businesses a further headache and $590 per year.
Ten Year Enterprise Tax Plan
As of 1 July 2018, the small business’ entity turnover threshold has been extended from $2 million to $10 million. As well as this, businesses with a turnover of less than $50 million will have their tax rate cut to 25.7% as a part of the Ten-Year Enterprise Plan.
Research and Development
The Government has used its 2018-19 Budget to announce a crackdown on research and development (R&D) tax incentives, saying “we are cracking down to ensure that R&D tax incentives are used for their proper purpose, with enhanced integrity, enforcement, and transparency arrangements, saving taxpayers $2 billion over the next four years”.
From 1 July 2018, a number of new initiatives will be in place to help ensure a level playing field for small businesses. It will allow Australia’s small businesses to be more competitive and encourage further innovation. For a summary of these changes click here.
The “Black Economy” (Doesn’t that sound dramatic!)
The Government also announced a crackdown on the “Black Economy” where businesses under-report revenue, often through cash in hand work. As of 1 July 2019, the Government will be outlawing cash payments above $10,000 made to businesses for goods and services. It’s time to get those books in order!
To find out more about the Federal Budget, head to https://www.budget.gov.au