Federal Budget - 2015
The recent Federal budget has incentivised small business by offering a 100 per cent deduction for equipment purchases to a generous limit of $20,000 per item. What could that mean for your business?
So, computers, cars, vans, kitchen equipment, tables and chairs, machinery, tools, servers, laptops and other items costing under $20,000 can now be 100% written off. The immediate deduction applies to as many items as a business can afford.
Assuming the budget measures are passed, the scheme will stimulate the economy and encourage business to spend. The scheme runs until 30 June 2017.
Fringe benefits tax used to be payable on technology items packaged through your salary. These items are now exempt. You can offer your employees technological items as part of their salary package without the overhead of calculating and withholding FBT.
Other budget changes impacting small businesses (< $2 million turnover a year) include; a reduction in the tax rate from 30 to 28.5 per cent for companies and a 5 per cent tax discount up to $1,000 for sole traders or partnerships (not Pty. Ltd companies). If you hire an older employee 50 or old, you can qualify for the Restart wage subsidy. Instead of two instalments of $3,000 and two of $2,000 over two years, the whole subsidy will be paid during the first year of employment $10,000. This is certainly worth considering. Restart doesn't cover older, unemployed people who are not eligible for income support. If you want to take advantage of these tax breaks and purchase some I.T. equipment, speak with your accountant to ensure you are eligible, then give Naomi a call at the office for a quote. (02) 43370700
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