The federal government announced Budget for 2015-16 on 12th May 2015. This budget had a lot of initiatives to support small business. Small business community is a big winner out of Federal Budget 2015/16.

Tax Rate Dropped:

Tax rates have been dropped for Companies under $2 million turnover from 30% to 28.5%. While unincorporated businesses such as sole traders, partnerships etc., will get a tax discount of 5% of the income tax payable or max of $1,000.

Professional Development:

Start-up businesses will get an immediate deduction for a range of professional expenses, such as professional, legal and accounting advice associated with establishing a legal structure i.e. company, trust or partnership.

$20,000 per Asset Deduction:

Start-up businesses will get an immediate deduction for a range of professional expenses, such as professional, legal and accounting advice associated with establishing a legal structure ie company, trust or partnership.

FBT Exemption:

Fringe Benefits tax (FBT) will be exempted on purchase of work related electronic devices such as iPad or computer. Previously only one portable electronic device was allowed.

CGT Rollover Relief:

Small businesses with turnover of less than $2 million will be allowed to change legal structure without attracting a Capital Gains Tax (CGT) liability at that point. For example a sole trader changing their business structure to a trust or company- CGT roll-over relief will be available and will not trigger a CGT liability.

If you’re interested in seeing what we can do for you, get in touch today by calling 08 6444 6311 or emailing lavishab@phoenixconsultancy.com.au