Following the announcement of the new Federal Budget, there has been a lot of information for businesses to digest. Fortunately, amongst the changes made, there is good news for Australian small businesses looking to upgrade their capabilities.
As part of the $5.5 billion Jobs and Small Businesses package, the government is extending a helping hand to an estimated 780,000 companies who fall beneath the $2 million per annum turnover threshold1,2.
A chance for small businesses to take big steps
Under the new accelerated depreciation scheme, small businesses will be eligible for a tax rebate on new equipment priced up to $20,000 per item. This marks a significant growth of the original depreciation initiative which only allowed claims for assets up to the value of $1,0003.
Any new assets acquired - not including stock items - from May 12 2015 until June 30 2017 can be considered for an immediate deduction under the new rules3. The historic move represents governmental desire to support the growth of small businesses by allowing them to invest in the assets they need without impacting their cash flow.
"We recognise that small business, in order to succeed, needs better cash flow and better tools for innovation as well," said Treasurer Joe Hockey, who went on to explain that the package would be of significant benefit to businesses' bottom line as well as their cash flow, as reported by the Sydney Morning Herald.4
Supporting the growth of your small business
One of the most important elements to running any growing business is to manage and understand your finances. When you know your strengths and weaknesses, you can adjust your business plan as the need arises and ensure that you're ready for any changes in the market.
Stay ahead of the game by knowing where your business credit stands with your Equifax business credit file. Part of Equifax, with My Credit File you can request your company's credit history report today in a few simple steps.
You can get your business credit report and stay informed about who is enquiring about your business' credit history, as well as receiving email updates through a Business Credit Alert subscription each time a change is made to your report.
These changes can include new credit enquiries, as well as information such as defaults, court judgments, writs or summons being added to your business' credit report. If you would like a free copy of your personal Equifax credit report you can order one here.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.
1The Treasury, The 2015 Budget: Joint media release with Senator the Hon Mathias Cormann, Finance Minister. Accessed May 2015.
2Prime Minister of Australia, Growing jobs and small business package to help small businesses invest more, grow more and employ more. Accessed May 2015.
3Australian Taxation Office, Growing Jobs and Small Business - expanding accelerated depreciation for small businesses. Accessed May 2015.
4Sydney Morning Herald, Federal Budget 2015: Small business gets a $5.5b tax surprise. Accessed May 2015.