During the 2015-16 budget, the Australian government announced that they will fund the jobs and small business package. This package is essential in the creation of employment as well as in the growth of small businesses. What does this package mean to your business and what are some of its key features? One of the key features of the package is tax cuts for the small businesses in Australia. For instance, a business that is operating as a company and has a turnover of not more than $2 million annually will enjoy a 1.5% tax break. The new tax rates for companies will be 28.5% as from 1st July 2015. Other businesses that are not companies will enjoy a 5% tax discount. More information on these rates can be found on the Australian Taxation Office website.
Another key feature of the package is that it allows you to depreciate any of your assets that cost less than $20,000 and bought between the budget date and 30th June 2017. In addition, the package has made major changes in Fringe Benefits Tax. The tax for any portable electronic devices your businesses provide to the employees has been scrapped off. These are those devices that are needed by the employees at work such as tablets, mobile phones and laptops. These FBT changes only apply to those businesses with an annual turnover of less than $2 million. The businesses are also able to roll over its Capital Gain Tax liability when changing the entity structure. The package has also reduced the compliance costs for small businesses.
The package has introduced a streamlined business registration program which will enable you to take care of several businesses registrations in just a single transaction. You can use one identifier when dealing with the government and you can complete your registration on business.gov.au. Professional costs such as accounting and legal fees have also been deducted right away. The government has also made plans to simplify the process of accessing crowd-sourced equity funding.
The government has offered to provide employment opportunities under the National Work Experience Programme. This offers the job seekers with work experience placements. Employers will also enjoy more flexible wage subsidies. The Restart programme will support the business in employing older workers. The Youth transition to Work Programme will support the youth in learning the behaviors and skills necessary in various community-based organizations. The government also plans to launch the Youth Employment strategy to assist the vulnerable job seekers to meet their employer’s needs.
You can visit the Budget 2015-16 website for more details on the above changes on the jobs and small business package, 2015 budget.