Government incentives for small business owners

Government incentives for small business owners

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Hi Readers,

Today we look at the incentives for small businesses, the time to buy is now!  The Government is tipped to increase revenue for small businesses, so now is the time to look at your current employment. If you’re thinking of buying a business, now is the time to get started, if you’re looking to employ, now is the time  to. Think seriously  about taking the advantage of  the government incentives.

Upgrade that old plant and equipment, if you’re a seller the plant and equipment is a big part of the sale price, having it in top order will enhance the sale. Read on for extracts on the future advantages for small businesses.

In the eyes of many commentators, small businesses have come out on top in the 2016 Federal Budget, which is great news!

It’s not only exciting for current owners, but also for those looking to sell, as it’s a good time to attract potential buyers who will benefit from the changes when they become their own boss.

Small business entity turnover threshold increased to $10 million per annum for most small business concessions – increasing access to over 90,000 additional small businesses

  • The company tax rate for small business cut to 27.5%
  • Businesses will receive an upfront payment of $1,000 to host young people asinterns.

Lower taxes

The big (and good) news for small businesses is that the trend from the 2015 Federal Budget of tax rate reductions is set to continue in the years ahead. Around $2.2 billion worth of tax cuts over the next four years were announced for small businesses, aimed at boosting new investment, creating & supporting jobs and increasing wages.

From July 1st this year the tax rate will be reduced to 27.5% for small businesses, and the ceiling for those that will be eligible for this will rise from an annual turnover of $2 million to $10 million. The 27.5% tax rate will gradually be extended to more businesses, reaching a turnover threshold of $100 million in 2019-20.

The Government’s vision is that this will drive employment, increase investment and innovation, with owners able to reinvest what they save on tax payments back into their own organisation.

Expanding access to tax concessions

Last year the Government made it easier for small businesses to operate and employ more Australians by lowering their costs and trying to reduce red tape. This year they will introduce new measures to help small businesses further invest in and grow their business.

The range of concessions already available to small businesses with turnover of less than $2 million will be extended to all businesses with turnover of less than $10 million from July 1st. Specifically, businesses will be able to get immediate tax deductibility for asset purchases costing less than $20,000 until 30 June 2017 – and then for assets less than $1,000.

Additionally, those that meet the requirements will be able to access extra tax incentives including the small business depreciation pooling provisions, simplified trading stock rules, and Pay-As-You-Go Instalments payment option. The increase in the turnover qualification will provide over 90,000 businesses with access to a range of small business tax concessions!


All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000. (Currently, the threshold sits at $1,000). Look at that new computer or old plant and equipment you need to replace and start NOW!

This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. These arrangements start from Budget night and continue until the end of June 2017. SO DON’T DELAY!

Tax cuts

The Government is reducing the tax rate for the more than 90 per cent of incorporated businesses with annual turnover less than $2 million. The company tax rate for these businesses will be reduced by 1.5 percentage points to 28.5 per cent.

To help all Australian small businesses grow, the Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015. This delivers a tax cut of $1.8 billion over the next four years.

Most businesses were paying 36cents in the dollar ATO website.


The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by expanding the FBT exemption for work‑related portable electronic devices. This will help small business employees stay connected in the digital economy.

Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners…

Wage subsidies to support employment

Employers who offer job seekers an ongoing job can receive a wage subsidy with flexible payment arrangements.

Work experience for young job seekers

The Government will provide $18 million over four years for around 6,000 job seekers annually to undertake valuable work experience for up to four weeks while they continue to receive income support.

Youth Employment Strategy

The Government will provide over $330 million to implement a Youth Employment Strategy to improve employment outcomes for Australia’s young people and make it easier for them to enter the workforce. Otherwise, Australia risks losing too many to long-term unemployment.

Moving job seekers into work

The Government is committed to ensuring that every Australian has the best chance to find and keep a job by providing intensive support to job seekers to help them overcome challenges and get sustainable employment.