Small businesses were the big winners in this month’s Federal Budget with incentives to improve cash flow and boost activity.
Treasurer Joe Hockey announced a host of measures to benefit businesses with a turnover of less than $2 million per annum including a 1.5 per cent company tax rate reduction to 28.5 per cent. Small businesses were also granted an immediate tax deduction (by way of accelerated depreciation) for the purchase of assets worth less than $20,000. In addition, employee fringe benefits tax exemptions were expanded to include portable electronic devices such as smart phones, tablets and notebook computers. The 2015-2016 Budget also delivered a 5 per cent tax discount to unicorporated businesses, up to a total value of $1,000, and retained existing arrangements that boost houseing investment such as negative gearing and capital gains tax.
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