Finally, good news for SMEs - IPA

 

THE 2015-16 Federal Budget has finally delivered some good news for small businesses according to the Institute of Public Accountants (IPA).

"As promised the Government has delivered a 1.5 percent corporate tax cut for those small businesses which are incorporated and based on the existing $2 million turnover test,” said IPA chief executive officer, Andrew Conway.

“Our concern that only incorporated businesses would see such a tax break has been alleviated with non-incorporated entities receiving a tax discount of 5 percent up to the cap of $1,000.

“This is the first small business tax cut in 13 years, so it is long overdue.

"We are very pleased, therefore, to see the Government adopt the IPA's signature tax policy of reducing the tax rate for small unincorporated businesses.

“Particularly pleasing is the increase in the accelerated depreciation write off threshold of $20,000 (currently $1,000 and previously $6,500 under the previous government), which is of significant assistance to small business cash flow. This will have major flow on effects for the broader economy.

“Other initiatives revealed at tonight’s Budget include significant reductions in red tape through the streamlining business registration initiative; and a special write-off for new start up companies to help with professional expenses. We look forward to more detail on how these measures will be administered.

“All in all, a good package to drive small business productivity and growth; which are key ingredients required right now for Australia’s economic wellbeing and prosperity,” said Mr Conway.

 www.publicaccountants.org.au

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