There were many positives in Treasurer Hockey’s second federal budget, the tone of which was a stark contrast to his grave warnings, severe spending cuts and austerity messages a year earlier. However one must question the optimistic forward growth estimates on which treasury base their calculations – I hope they are correct.
We attach a paper issued by the Institute Of Chartered Accountants that in detail explains all aspects of the budget – Click Here To Open Federal Budget 2015 Bulletin.
Commendable benefits for the small business community include:
- An immediate deduction for spending on plant and equipment by small business with a turnover less than $2.0m (this has been well received with several clients already in touch on this incentive),
- Write offs for the cost of establishing a new business,
- CGT rollover relief when changing business structures, and
- A reduction in the small business tax rate.
Announcements of plans to impose GST on goods bought online from overseas suppliers and a targeting of the multi-nationals who make millions out of Australia and pay virtually nothing in tax are to be applauded. I fear implementation of effective laws in these areas will be a drawn out process. At least the Government has tabled their motivation to attack these inequities which deny our country valuable revenue and place domestic businesses at a severe disadvantage.
Finally it was pleasing that no changes were made to the way in which superannuation and pension funds are to be taxed – and nor should there be! Those balances have been accumulated over decades by members who sacrificed lifestyle choices to put earnings into superannuation. Their foresight in saving should never be penalised.
Excuse the brevity of this summary as there are so many announcements which are covered in depth in the Institute’s paper that spans 74 pages – happy reading!
We are available to answer any query you have regarding the budget and how it impacts on your specific circumstances.