Three measures aimed at supporting small business were introduced yesterday as part of the Government’s $5.5. billion Jobs and Small Business package.
The new legislation allows for unincorporated small businesses to receive a five per cent tax discount and gives new small businesses the chance to deduct start-up expenses immediately. Expenses such as legal advice and registration fees were previously required to undergo depreciation over five years.
Portable electronic devices that are provided by employers to employees will now see a fringe benefits tax exemption from 1 April 2016. The exemption will apply to small businesses bringing in an aggregated turnover of under $2 million p.a.
“With the introduction of today’s legislation, the hard working women and men of Australian small business have further certainty that they can go ahead and make the most of the package,” Small Business Ministers Bruce Billson said in a joint statement with Treasurer Joe Hockey.
“It builds on the successful passage of the first two bills through the Senate last week, confirming all small businesses access to an immediate tax deduction for assets costing less than $20,000 and the 1.5 per cent tax cut for small companies with a turnover of less than $2 million.”
Of the six small business measures put forward in the Budget, five have now been introduced. The sixth, which will allow small businesses to undergo a restructure without facing capital gains tax liability, is currently scheduled to be introduced in the Spring sittings.
