The 2018 Federal Budget

What’s in it for you?

We know it’s important to understand what the Budget announcements might mean for your business, so here’s a quick breakdown of some key points:

• For companies with a turnover of less than $10m, the instant asset write-off for asset purchases of up to $20,000 has been extended for another 12 months to 30 June 2019.

• GST Reporting processes for small businesses will be streamlined with changes to be implemented to the BAS GST Worksheet.

• A lower Tax Rate of 27.5% will apply to a broader range of businesses, with the turnover threshold increasing from $25m to $50m – commencing 1 July 2018.

• Small business income tax offset will increase (capped at $1,000) for small business sole traders, partnerships or trusts 

• Tax concessions for small business will be expanded with turnover threshold increasing from $2m to $10m

• A greater number of small businesses can also now access a range of small business tax concessions with the small business entity turnover threshold rising from $2m to $10m.

The Federal Government wants to help Australian small business owners by making it easier to change and grow their business, to take advantage of economic opportunities. More details can be found at the Budget business webpage: https://www.budget.gov.au/2018-19/content/business.html

Other sectors that are subject to Budget changes include Agriculture, Education, Transportation & infrastructure, Technology & Innovation, Employment, Superannuation, Child care, Aged care and Healthcare. More details on the official Budget website: https://www.budget.gov.au/index.htm