Small businesses winners in the 2015 Federal Budget

If you’re a small business owner, you probably have nothing but praise for last night’s Federal Budget announcement, which introduced the first small business tax cut in 13 years.

A range of industries from hospitality to accountancy firms have applauded the Government’s decision to implement tax cuts and asset write-off provisions for small businesses.

According to Restaurant & Catering Australia (R&CA) these measures will reduce costs and allow small businesses to grow.

When you consider that over 93% of all restaurant, café and catering businesses in Australia are small businesses and the average turnover of these operators is $1 million, it’s no surprise the hospitality industry has welcomed these changes.

“The ability to write-off assets up to $20,000 will also mean businesses invest in new equipment and technology that continually improves the dining and culinary experience in Australia,” R&CA CEO John Hart said.

This sentiment was echoed by the Institute of Public Accountants (IPA) that was particularly pleased by the increase in the accelerated depreciation write off threshold of $20,000, which by comparison is only currently $1,000 and previously $6,500 under the last Government.

“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,” said IPA chief executive officer, Andrew Conway.

The Business Council of Australia described the budget as a shot in the arm to small business, as it will create a better environment for business confidence that will drive investment, job creation and economic growth.

“The 2015-16 federal budget is a sound, sensible and thoughtful budget which takes pragmatic steps to get Australia’s fiscal strategy back on track while investing in jobs, participation and the capacity of the economy,” Business Council of Australia Chief Executive Jennifer Westacott said.

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