In 2016-17 budget, Australian Government brought about many measures that will help the small business owners. Overall, it includes cut in the taxes, eases up all the business taxes and even offers great help to job seekers. This budget is a big answer to the age-old policies of small business whereby Australian small business houses will get a new direction. In fact, more start-ups will come in the limelight and that will increase the economy of Australia. Though, the budget is not the ultimate answer, but it helps the new business owners to become more competitive and find various solutions to survive in the market. Check out why this budget is such a ‘talk of the town” for small business owners.
Now, the business can take the post tax income and even invest it in some new business ideas. This is applicable for all size of businesses. The business owners of Australia are not competing with local business houses, but they are in competition with the Global market, which is a huge responsibility and it is definitely a big challenge for all business owners. Previously, “no money and only new ideas” did not give any good news to the start-ups and small business owners. But, this budget is a “sweet music” to the ears and tax reduction helps them to use these ideas and take actions accordingly.
Forget “I am thinking to do this…if…” and now, you can actually fulfill your thoughts and put them into actions to increase the ROI from the business. In this budget, $200,000 will be invested for the promotion of Fintech in Australia and it will help more reliable investors to invest in the start-ups. Thanks to the technology, that people are living in a digitally enhanced world and so the economy of Australia also witnessed the digital innovation towards the growth of the business.
Tax Changes:
- Tax discount increase for small business- If you have annual turnover of <than $5 million, then the discount will be from 5% towards 6% for next 10 years and it is applicable from 1st July, 2016.
- Small business threshold will see a hike to $10 million from $ 2 million and it will be applicable from 1st July 2016.
- By 25% the tax rate of the company decreases for the next 10 years.
Company with >than $10 million turnover will get tax decrease up to 27.5 % and it is also applicable for 1st July 2016.
Employer benefits:
- As per the budget, employers can hire job seekers who will help in the growth of the business. Their young minds will help the business to rise and shine.
- Employers will get $1,000 to hire youths for internship programme.
- Employers will get $10,000 as wage subsidy if they employ job seekers under the age of 25 years and it will be applicable from 1st January, 2017.
So, this Australian budget is a sign of relief for the small business owners and they can invest in the business with new ideas and latest innovations.
