Post-Budget reflections – small business focus
Post-Budget Reflections for Small Businesses
The Federal Budget that was handed down on 11 May is critical for our country. Its main objective is to help small businesses recover from the COVID-19 pandemic’s massive destructive economic effects, so the provisions are many and wide-ranging. Here are a few brief reflections on what is included, but you are welcome to contact HY Accounting for more detail on how you might be directly impacted.
What does the budget mean to me and my business?
The budget contains resources to help you and your business that were not previously available. These are in the form of tax concessions, incentives, training, regulation changes, even mental health support and more.
How will the budget impact me?
There should be a noticeably positive impact on most small businesses. For instance, there will be funds allocated to extending the “shop local” scheme in the hope that it will drive more traffic to your business. There is also a massive $1.2 billion digital strategy expansion that will affect most businesses, not just technology companies, because all businesses use some form of digital resources. But there are also a great many tax concessions and incentives that may have a direct effect on you and your company. HY Accounting would be happy to discuss these with you.
How can I benefit from the budget?
The specific benefits each small business owner will receive depend upon individual circumstances. But there are many provisions that will be welcome to most people, such as:
- Personal income tax decrease: The individual tax rate will be lowered and backdated to July 2020.
- FBT: Some fringe benefit taxes will be eligible for exemptions or reductions.
- Loss carry back provision: Some businesses will be eligible to offset current losses against previous profits temporarily and claim a refund.
- Instant asset write-off: The limit will be lifted to allow businesses to write off the full value of some of their assets.
- Intangible assets: The entire tax treatment of intangible assets will be overhauled, affecting not only what can be written off but also what can be depreciated.
New regulations will be implemented to help SMEs. Just a few include policies to help prospective franchisees, as well as small businesses who are at a disadvantage in the procurement process. Also, cases involving disputes between the tax office and businesses will be moved away from the court system.
There will be incentives regarding staff hires, such as wage subsidies for trainees and apprentices. There will also be resources for job training. Even mental health support will be available to small businesses.
Help me understand the budget in plain language.
Small businesses will be getting tax breaks to relieve their financial burdens. The budget will also provide funds for programs and resources that will help small businesses not only recover but also grow and move into the future in a stronger position than they were before the pandemic.
There are provisions in the budget that can have a positive impact on small businesses all around Australia. Some of the tax planning or business finance ramifications of the budget should be discussed with an accountant or tax professional. To be sure that your company reaps all the benefits it is allowed, contact HY Accounting on 02 9837 6148 or email@example.com for more information regarding the specifics of your particular situation.
These measures are not yet law and that the comments made in these articles may change depending on the legislation being passed. Liability limited by a scheme approved under Professional Standards Legislation. This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person or business. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.