Categories: Uncategorized

Why it’s great to be a Small Business

Benefits for small businesses in our federal budget

Australia’s 3.2 million small businesses – and the 6.7 million labourers they utilize – are currently praising being viewed as a ‘small’. That is because they’ll have the option to utilise a few select tax concessions.

As per the Australian Taxation Office (ATO), an SBE is any “sole trader, partnership, company or trust that operates a business for all or part of the pay year, and has aggregated turnover under $10 million.”

Here is only a portion of the positive news for SBE’s:

A brought down company tax rate of 27.5 percent – the most reduced in 50 years
– Deductions for some prepaid business expenses
– The continued ability to write off assets up to $20,000 in value
– Increased unincorporated tax discount rate
– Simplified PAYG payment arrangements
– More straightforward trading stock rules

Cultivating growth in Australia’s different SBEs was one of the government’s top needs this budget.

Speaking with Peter Marsh, principal at Marsh Tincknell on the matter, he stated: “The Government’s job is to provide a healthy environment in which small business can thrive. That includes simplifying regulations and encouraging investment in the right areas, as well as providing tax incentives such as the instant asset write off which encourages small business to invest in assets that will help them grow.”

He went on to say that, “By lowering the company tax rate it encourages small businesses to retain profits and invest back into their business, and discourages personal discretionary expenditure.”

Lower company tax rates are unmistakably beneficial to small businesses, however not all benefits are so direct. You will need to be working with a good Accountant to be sure you are getting the most benefit from all of the aforementioned areas.

Also, the legislation offered huge motivating forces to state governments to implement more efficient business registration processes, that are based online. This means that businesses can get up and running faster rather than having to wait for slow manual processes.

At Marsh Tincknell Accountants, we focus on achieving your best possible tax, and business outcome. Overall, this leads to more peace of mind for our clients. Chat to us today about how we can help you.

Marsh Tincknell

Published by
Marsh Tincknell

Recent Posts

The Best Business Accounting Apps to Download

Painstakingly writing down records in heavy ledger books is supposed to be a thing of the past, and yet some…

3 days ago

How AI Can Benefit Accounting

I found this compelling article from the Artificial Intelligence B2B. It's called AI in Robotic Accounting and Auditing.  It makes some really…

1 week ago

The Benefits of Having an Integrated Accounting System

Discovered this interesting piece by Jayne Thompson and it really piqued our interest. It’s called What is an Integrated Accounting…

2 weeks ago

Taking Advantage of Small Business Tax Deductions Can Result in Huge Savings

Thought we'd share this fascinating article from Sarah Sugar. It’s titled The Ultimate List of Small Business Tax Deductions. It…

2 weeks ago

How to properly set an exit strategy for your business

It goes without saying that it doesn't hurt to be prepared with an exit strategy Research demonstrates that if a…

2 months ago

Changes to Property in Australia

With the introduction of the new financial year, there was also an introduction of some new rules when it comes…

3 months ago