Budget has always been a big issue for businesses. Today we'll talk about the federal budget and what implications it might have to tech businesses all over Australia.
THE RIGHT TIME FOR BUSINESS TO INVEST
All small businesses will be given an immediate tax deduction for any separate assets they buy that cost less than $20,000. This limit will apply to each and every item they purchase. Small businesses that satisfy the conditions can apply this $20,000 rule to as many separate items as they see fit. This rule will apply to any purchases done from the start of budget night until the end of June 2017.
This will help small businesses save on the expenditures when trying to procure supplies for their respective field of business. This will be a great opportunity for them to grow as a business.
This came at a very favorable time for small businesses, with the issue of storage and other technological advances, this will be crucial for small businesses that want to expand their technological capabilities by purchasing updated systems or take advantage of the online services available.
Good news for 90% of all incorporated businesses with an annual turnover of less than $2 million, as the government plans on reducing their tax rate by 1.5 percentage points.
As part of a move to help all Australian small businesses, the government also plans to provide a 5% tax discount to all unincorporated businesses with an annual turnover of no more than $2 million. This plan will deliver a tax cut of $1.8 billion over the period of the next 4 years.
The government recognizes the importance of these small businesses in the growth of the overall economy of the country. These Tax Cuts will be able to help small businesses grow and provide more jobs and better services.
CUTTING RED TAPE
The Australian Government will be reducing the red tape within the Fringe Benefits Tax or FTB system. They plan to do this by expanding the scope of FTB exemption for work related portable electronic devices. This way, the small business employees will stay connected in the digital economy.
Small businesses can also gain a lot by using the Capital Gains Tax rollover relief when changing their structure but keeping the same owners.
WORK EXPERIENCE FOR YOUNG JOB SEEKERS
To combat the problem of incompetent and inexperienced employees, the government plans on providing $18 million over the next 4 years for about 6,000 job seekers every year to give them valuable work experiences for up to a month while they continue to receive the income support they need.
This is great for businesses in a sense that they will no longer be hiring inexperienced employees. The valuable work experience the government provides them with will be crucial to the growth of one’s company.
This opens up a door to a new world of business processes and collaboration. With the extra budget, they should be able to make use of all the web based services available today.
Taking advantage of this great budget and tax cuts small businesses should be able to confidently set a more substantial budget for their technology department. Small businesses should be able to take advantage and make use of all the new technologies today as well as planning for a great Disaster Recovery plan.
The benefits that this budget gives to small businesses should be able to boost them up to compete with larger businesses in the market. Technology wise, this will be a great opportunity for businesses to adjust to the changing tide of storage and the deployment of workplace tools.
Using the new tools available, they should be able to improve the productivity and workflow of their businesses.