The right time for business to invest
We are creating the right environment at the right time to invest
ACCELERATED DEPRECIATION
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.
Further information on accelerated depreciation is available on the ATO website.
Tax cuts
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.
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.
Further information on tax cuts for Small Business is available on the ATO website.
CUTTING RED TAPE
The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by expanding the FBT exemption for work?related portable electronic devices. This will help small business employees stay connected in the digital economy.
Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners.
Further information on changes to the FBT is available on the ATO website.
Information on starting and running your small business is available at business.gov.au.
Wage subsidies to support employment
Employers who offer job seekers an ongoing job can receive a wage subsidy with flexible payment arrangements.
Work experience for young job seekers
The Government will provide $18 million over four years for around 6,000 job seekers annually to undertake valuable work experience for up to four weeks while they continue to receive income support.
Youth Employment Strategy
The Government will provide over $330 million to implement a Youth Employment Strategy to improve employment outcomes for Australia’s young people and make it easier for them to enter the workforce. Otherwise, Australia risks losing too many to long-term unemployment.
Moving job seekers into work
The Government is committed to ensuring that every Australian has the best chance to find and keep a job by providing intensive support to job seekers to help them overcome challenges and get sustainable employment.
Small Business Tax Relief Examples
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How these measures can help your business
The engine room of the Australian economy
Small businesses drive growth and create jobs
We want to ensure Australia is the best place to start and grow a business. The best way to create jobs is to build a strong, prosperous economy that encourages business confidence.
96 per cent of all Australia’s businesses are small businesses, employing over 4½ million people and producing over $330 billion of our nation’s economic output per year.
We know the hard working women and men of Australian small businesses are the engine room of our economy. In 2013-14 Australians started over 280,000 small businesses.
There is no doubt small business is at the forefront of Australia’s jobs and growth; and the Government is delivering for small businesses now and into the future.
Information on starting and running your small business is available at business.gov.au.
Helping all Australians participate
The ability to work and earn an income is a foundation of Australian life
The 2015 Budget provides over $330 million in targeted spending on new jobs initiatives aimed at employers and young job seekers to support the transition to work. Incentives for employers will also help mature age job seekers back into work.
The Intergenerational Report outlines the need to drive economic growth by increasing participation in the workforce. This means we must find ways to help and encourage those outside the workforce to enter or return to work.
Since the Government was elected, nearly a quarter of a million new jobs have been created. The Government is getting the economic fundamentals right, reducing red tape and building confidence in the economy. We are creating the best conditions to support employers to create jobs and ensure that job seekers have the opportunities they need.
Many young people are still looking to get their foot in the door, while others have disengaged from education and work.
Action is needed to ensure young Australians are not at risk of becoming long-term unemployed, welfare dependent and disconnected from society. This is especially the case for young Australians facing multiple barriers, including mental health concerns.
Many older workers also need support to remain in employment longer or to return to work if they choose.
The Government has announced the new jobactive employment services which improves services for job seekers and employers and is more focused on results. It will achieve this with a balance of obligations, incentives and assistance to help more job seekers into work.