Federal Budget 2015

Small Business Incentives

The recent Federal Budget has offered up a little incentive for small business, thus defined as being a company that turns over less that $2.0 million annually.

If you fit in to this category, then your annual rate of Tax has been lowered by 1.5%, down from 30% to 28.5%.

This category of business also receives an immediate Tax Break benefit that can be utilised ahead of the end of financial year, namely June 30 2015.

Capital Purchases up to $20,000 (read $19,999) will receive an instant tax write off in this financial year, as well as the following financial years.

This means new and used commercial cars/utes/vans, computer equipment, office furniture, IT/Smart phones, copiers, etc…any depreciable item used for business.

There is no limit on the number of purchasers that a business can make – as long as they are all under the $19,999 limit.

Please don’t wait until the last 2 weeks of June to consider these purchases, talk to your finance manager immediately, so that we can set up a pre-approved limit to accommodate such purchases so that your finance is ready and waiting.

Please take care as the ATO will be checking and prosecuting any company that attempts to ‘split’ invoices for goods over $20,000 into multiple invoices under the $20,000 threshold.


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