2015 Federal Budget Overview
The Federal Treasurer wants mums and dads, small business owners, farmers and the young to “get out there and have a go” in a budget targeted at stimulating activity at the grass roots. It is a carrot and stick affair, incentivising people in the heartland but penalising the “dirty thirty” multinationals at the “top end of town” who the Government does not believe are playing the tax game fairly. This budget is not a sequel to last year’s budget. This is a completely new plot with a new script. Families, particularly on lower incomes, were already winners with pre-budget expansions of childcare concessions examined below.
But the heartland should celebrate the fact that – finally! – we have a budget that provides targeted measures and incentives for micro and small businesses. Small businesses with a turnover of less than $2 million benefit from a range of measures. The company tax rate will drop to 28.5% (but the franking rate will remain at 30%!) There is also the “hire a hubbie” 5% tax discount for unincorporated small businesses that get a tax discount of up to $1,000. But the signature measure must be the immediate deduction for fixed asset purchases of less than $20,000.
The Treasurer wants to trigger a 2015 year end small business spend-a-thon as SME’s lower their tax this year by upgrading their businesses before year end. This is the only measure to commence from budget night. You can commence the spending frenzy from now (subject to Senate approval).
For the full “Have-a-Go” (…and don’t sack Joe) click here.