EXTENDING the instant asset write-off programme and incentive payments for cutting red tape are highlights of the Budget boost for small business, Small Business Minister Michael McCormack says.
“Small business has a big impact on the Australian economy – with 3.2 million small businesses employing 5.6 million Australians,” Mr McCormack said.
“It’s small business – not Government – which creates jobs and that’s why the Government backs small business.”
Mr McCormack said the Government will extend the immediate deductibility rules for a further 12 months – to 30 June 2018 - allowing small businesses with an annual turnover of up to $10 million to immediately deduct eligible assets each costing less than $20,000.
“In the past few months I have met hundreds of small businesspeople on my nationwide small business roadshow. I have heard firsthand how helpful the instant asset write-off is for many small businesses to invest in the capital equipment they need to grow and – importantly – create more jobs,” Mr McCormack said.
“I have heard how it helps small businesses invest in their business and replace or upgrade their assets.
“Partnered with our recently-delivered tax cut for small business and extending the definition of ‘small business’ to benefit more enterprises, this investment continues the Government’s support for small businesses to pursue new ideas, invest in themselves and create more jobs.”
Mr McCormack said the Budget also includes a $300 million incentive to the States and Territories to cut red tape.
“No matter where I have travelled or whom I have met, red tape is top-of-mind for small business,” Mr McCormack said.
“Having run my own small business, I know what it’s like to spend all day in a business only to start the paperwork long after the operation has closed. Across Australia I have heard similar stories of how compliance costs can prevent small businesses from investing in themselves or spending time with family and friends.
“That’s why the Government is focused on simplifying small business paperwork and committed to cutting red tape costs by $1 billion every year when we were elected.
“Since then, the Government has reduced the annual regulatory burden on businesses and the community by more than $5.8 billion, exceeding its target every year.”
Mr McCormack said the Government will provide up to $300 million over two years to States and Territories through the National Partnership on Regulatory Reform to reduce regulatory burdens and remove unnecessary restrictions on competition.
“Whilst the Federal Government has delivered red tape reduction and simpler paperwork – especially the simpler BAS, which begins from 1 July – I want to work with the States and Territories to continue this good work,” Mr McCormack said.
“I have asked small businesses around Australia to tell me their stories of paperwork and compliance so we can try to make it simpler. This $300 million incentive over two years will help us work with the States and Territories to make the business of doing business even simpler.”
You can find out more about the Government’s small business policies by searching ‘small business’ or visiting the Small Business website.