The latest budget has delivered some great benefits for business, but you need to be correctly structured to take advantage of them.
Luckily the government has also made changes to the way business setup costs are managed so the costs of restructuring and getting the right accounting and legal advice can now be written off immediately – so you should take this opportunity to get yourself correctly structured for success and tax optimisation.
The changes are:
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.
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.
If you are operating as a sole trader or partnership now is the time to consider incorporating – you can do it online here
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.
See more at the official budget site here