With the release of the 2015-16 Federal Budget on Wednesday 13th May, Small Business owners immediately voiced their approval at some of the more popular measures that were announced.
One of these is the immediate deduction for small businesses in respect of depreciating assets costing less than $20,000 – until 30 June 2017. Small businesses with aggregate annual turnover of less than $2 million can immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000. This will apply for each asset acquired and installed ready for use between 7.30pm (AEST) 12 May 2015 and 30 June 2017.
Also announced was:
- A small business tax cut consisting of a 1.5% tax cut for small companies and a 5% tax discount on income from unincorporated small business activities
- CGT roll-over relief for changes to the entity structure of small businesses
- Changes to the methods used for calculating work-related car expense deductions from the 2015-16 income year
- Government will allow businesses to immediately deduct a range of professional expenses associated with starting a new business, such as professional, legal and accounting advice.
For further information regarding how the 2015-16 Federal Budget will impact you – the Small Business owner – please contact our office.
