Small business and the Federal Budget

12.05.2010

While the Budget papers describe Australia's 2.4 million small businesses as the "backbone" of the economy, most pundits believe that there is very little that is new in the Federal Budget for small business

The one item that was regarded as new was the Commonwealth Government decision to fast-track a cut in the company tax rate from 30 percent to 28 percent for businesses with revenue under $2 million. However this was in fact announced last week as part of the Government's response to the Henry Tax Review, as was the immediate tax write-off for assets under $5,000.

There is however a few key aspects in the budget that will help small and medium business owners.

  • Cuts to GST compliance costs are welcome, and these will be greatly appreciated by most
  • The announcement of $660 million in new funding for skills and education, including 39,000 new training places in high-demand sectors and 22,500 new apprenticeships will also be well received.

Therefore despite the fact that the economy appears to be in good shape the Budget does not provide any vote winning sweeteners for small businesses. However if the economy returns to the rosy health that is predicated the question is - will anyone really notice?

For a full copy of the 2010 Budget papers, visit the Commonwealth Government Budget website at: http://www.aph.gov.au/budget/

 

 

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