What the Budget actually means for your business

Tax breaks for small businesses are one of the main elements of this budget, with the $5.5 billion package in tax breaks being described by government as the “biggest small business initiative in our nation’s history”.

So why all the love for tradies and small business? Simply put, the government wants you to invest in your business and help grow the economy.

If you are wondering what the impact of the budget is for you and small business owners like yourself, we’ve pulled together the key highlights and what they mean for you.

Budget 2015 Highlights

Looking to cut to the chase? Here is what you need to know:

Investing in your business

You can spend up to $20,000 individually on new tools, equipment or machinery and claim this as a tax deduction. Every individual item you purchase for your business is immediately tax deductible and applies to basically anything you buy that is not stock. You have until June 30, 2017 to take advantage of this break.

Tax Cuts

If your annual turnover is less than $2 million, and you are an incorporated business, you will now pay a lower rate of business tax, with a cut of 1.5%.

If you are a sole trader, i.e. not an incorporated business, you get a 5% tax discount, up to a maximum value of $1000.

Transport

If you use your personal car for work, you can now only claim 66 cents a kilometre, down from 77 cents.

Employment & Training

There is also cash for training and apprenticeships via the existing Industry Skills Fund and the Australian Apprenticeships Support Network. There is also a wage subsidy if you take on a new job seeker.

For more details on any of these, it’s worth speaking to your accountant or financial advisor.

What are your thoughts?

Will you be looking to invest in your business? What are you most likely to purchase?

Let us know your thoughts in the comments below.