Budget time again. After scouring through the papers and online material, there aren’t a lot of surprises this year. The government has delivered a pretty basic budget promising to get Australia back in black by 2012-13. Lets see what it has for Small Business
Addressing a Skills Shortage: “Building Australia’s Future Workforce” includes the establishment of a $558m fund to provide training opportunities for up to 130,000 skilled workers. This should help small business address the recurring problems of finding qualified skilled staff.
Lower Tax Rate: Small businesses will be able to access a reduced 29% tax rate in 2012-13. Lower tax rates will produce more profit which may be used to grow the business or reduce business liabilities.
Lower PAYG installments: Reduced PAYG installments will benefit approx 2.7m of small businesses by providing $700m of additional cash flows in 2011-12.
Depreciation Changes: From 2012-13, small businesses will be allowed to have enhanced depreciation allowances for motor vehicles. They will be able to claim up to $5,000 as an immediate deduction. For the first year, they can also claim 15% of the remainder. For subsequent years, the 30% depreciation rate is maintained. The enhanced deduction for motor vehicles, a key asset for most small businesses, will lead to lower taxable incomes, and thereby a reduced tax due for small businesses.
Small Business Support Line: The ‘Small Business Support Line‘ continue with an additional $7.1m of Government funding.
Advisor Finder: A great tool was recently launched ‘Adviser Finder’ tool. This helps small businesses gain assistance from the Enterprise Connect Centres and the Business Enterprise Centres.
A fairly basic get the job done budget really. Not a lot for small businesses but then there’s not a lot for anyone really!