Federal Budget 2015-16
- January 22, 2016
- Posted by: Dinesh Bhatia
- Category: Budget, Funding trends
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.
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.
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.