On the 26th of August, the first of the proposed legislative changes were passed by the Federal Government to begin the implementation of its 2015 budget package for Small Businesses and Start ups.
Small businesses with an annual turnover of less than $2 million have been the winners in the 2015 Budget.
So what do these changes mean for your business?
- Tax discounts
Unincorporated small businesses (such as sole traders and partnerships) may now be eligible for a 5% tax offset capped at $1,000. This 5% discount applies from the 2015-16 income year, which means it came into effect from 1 July 2015.
- Immediate deduction of startup costs
Both incorporated and unincorporated small businesses can now immediately deduct certain startup costs in the year in which they are incurred. Costs which can be deducted include government fees and charges as well as costs associated with raising capital such as professional costs including legal and accounting fees.
These deductions will apply to costs incurred during the 2015-16 income year and onwards.
- FBT exemptions
The current fringe benefits tax exemption has been extended so that employers who provide their employees with more than one work-related portable electronic devices, such as a mobile phone and tablet, will now get an FBT exemption. Previously employers were only granted an exemption for one device.
Employers will be able to access the FBT exemption from 1 July 2016.
More information about the 2015 Federal Budget package for Small Business can be found here or contact: