The Nationals – True champions for small business
Small business is the backbone of the Australian economy and nowhere is this more evident than in our regions. Everyday more than 5.6 million Australians go to work in 3.2 million businesses. In the regions, small businesses are also the primary job creators.
The importance of small businesses to rural, regional and remote areas is why Federal Minister for Small Business and proud Nationals Member for the Riverina, Michael McCormack, was delighted to announce significant measures to boost small businesses as part of the 2017 Budget.
“Small business is Central to the Government’s plan and it’s backed up with a vision for Australia’s future,” Michael said.
The measures are extensive and instant, with small businesses owners – who employ over half our work force every day – able instantly to invest in their business thanks to the raft of new measures introduced by the Federal Government.
The popular $20,000 instant asset write-off is to be extended for another year, meaning small businesses can access the tax-deduction until June 2018. This policy has the ability to reduce a small business’ taxable income by up to $20,000 dollars on each applicable purchase.
“Across Australia I heard from hundreds of small business people about how helpful the $20,000 instant asset write-off programme is to help businesses grow, pursue new ideas and hire more Australians.”
“I heard from restaurateurs how it creates a ‘chain reaction’, from jewellers how it helped make products more efficiently and from famers how they can purchase a new grain feeder to help manage stock” Michael said.
While primarily intended for physical assets, the write-off can extend to other business expenses such as the building of websites – a vital tool for any small business in a modern economy – and how many regional businesses reach their customers.
Last financial year the $20,000 instant write-off measures were considered the most useful, and often underutilised, small business tax-measure by accounting giant H&O Block. We encourage all members to investigate how this measure could be applicable in their own businesses as we draw to the end of the financial year.
Another significant announcement from Budget 2017 was the redefining of the small business threshold from $2 million to $10 million in turnover. Not only does this enable more business to access the asset write-off measures, but also other concessions currently limited by the threshold.
“The redefinition will improve cashflow for more small businesses, helping them to invest in their business and replace or upgrade assets and – above all – have a go.” Michael said.
In addition, the small business tax rate will be cut to 27.5 per cent with the unincorporated tax discount expanded to 8 per cent. These tax cuts are in addition to the significant red-tape reductions already put in place by the Commonwealth Government, which has slashed $5.8 billion in costs for small businesses. Business Activity Statements are also to be streamlined, with reporting requirements being reduced from seven areas to three: GST on purchases, GST on sales and total sales.
Finally, a code of conduct for big business regarding payment times to small business has been announced by The Business Council of Australia, with big businesses agreeing to a voluntary code that will ensure small businesses are paid within 30 days and cashflow is constant. This has been welcomed by Michael, a former small business owner himself.
“No matter the history, size or sector of the hundreds of small businesses I have met, they all tell me the same thing – cashflow is key. Any move industry can make to improve cashflow for small business is very good news.”
The Nats are proud to be at the helm of these new measures for small businesses, so often the lifeblood of rural and regional communities.
“Above all, this is about getting out of the way of small business and letting them do what they do best.” Minister said.
Labor has already confirmed they would not support any of these measures were they to win government.
“Bill Shorten has turned his back on small business and on 5.6 million Australian workers, and he has confirmed yet again that Labor just don’t get small business.” Micahel McCormack said.
“The message to small businesses is clear - the Liberals and Nationals stand with them all the way.”
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