2015 Budget - Small Business what a night!

The Treasurer last night announced the expected reduction of the company tax rate of 30% by 1.5% to 28.5%.
Sole traders, partnerships and trusts did not miss out and will enjoy a 5% tax discount, capped at $1000 per person, per year. This will be given as a tax offset at the end of the financial year.

The hugely unexpected announcement for small business with a turnover of less than $2mil, was the $20,000 immediate tax write off for any new purchase of tools or machinery that the small business will make from 7.30pm May 12, 2015 and June 30, 2017.

 
While this can be a great for the small business that will make a large profit in a specific year, assisting to reduce their
immediate year's taxable profit. The accelerated write off can have implications later in the event that the small business was to sell or dispose of the asset. The small business will have to pay tax on the whole amount of the sale price as it has been written off. The election of whether to use the immediate tax write off, should be applied by a case by case basis discussed with your Accountant.

Capital Gains Tax (CGT) rollover reliefs was only available to sole traders or partnerships that chose to become a company, new changes will allow a small business (that has a turn over of less tha $2mil) to change their legal structure without triggering  a CGT liability from 1 July 2016. The Government has recognised that new small businesses may have chosen an initial incorrect structure that may not be appropriate later when the business is established.

As small business was the highlight of last nights Federal budget, it also addressed the complexities individuals have had with business start-ups. The introduction of one website to provide ease for the registration of a business name, application for ABNs and other Government requirements will all in one place, there will also be an immediate deduction for some of the expenses associated with the starting-up a new business these are professional, legal and accounting advice, this is a welcome improvement.

Thinking about starting a new business?

The new financial year is coming, many people have approached me about starting new business.

To give you a bit of an advantage, I found some information for free business information and courses that the Victorian Government hold to assist new business owners. Understanding what is involved and ideas of how to manage, control and advertise your new business, is one of the most difficult hurdles to get over and accomplish.

Here is a quick link, have a browse of the web site and tell me what you think and if you found it helpful.

http://www.business.vic.gov.au/

Wave Accounting is a free accounting package for the small business owner. So far the testing has been fun. Besides creating your invoices and any other financial document you need, I liked the way you can link your bank accounts to it, so that it is uploaded directly into your Wave Accounting package. Once it is all set up you can download an app to your phone or tablet that allows you to take a photo of your receipts and they too load into your Wave Accounting package.

https://www.waveapps.com/

If you struggle with computers and need some help to set up your accounting software call us on 1300 488 330 or contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.