Small businesses engineer growth

SMALL business is the engine room of Australia’s economy, employing more than four million people across our nation.
Combined, they produce over $330 billion of our national output.
And small businesses are the backbone of our local economy, from retail outlets along the Healesville shopping precinct to trades businesses in Monbulk and everything in between.
When small businesses succeed, our local economy and community prospers.
This is why our government is focused on helping to support and strengthen small business.
This year’s Federal Government Budget is a game-changer for hard-working local small business owners.
For those who currently run a small business with annual turnover less than $2 million, the budget reduces the tax burden to the lowest rate in 50 years.
Incorporated small businesses will get a 1.5 per cent cut in the company tax rate, and unincorporated small businesses will get a 5 per cent tax discount, up to $1000 a year.
To help improve cash flow and cut down paperwork, small businesses will get an immediate tax deduction for each and every individual asset valued up to $20,000.
This means that business assets under $20,000 – such as fridges, computer, major office and retail equipment, tools, vehicles and machinery – can be immediately written off.
I would encourage local small business owners to consider taking advantage of the instant asset write-off by purchasing any much-needed equipment in this financial year.
Farms with turnover of less than $2 million qualify as a small business and are therefore also eligible to immediately write-off all asset purchases up to $20,000.
In addition, local farmers can now claim a tax deduction on all capital expenditure on water facilities, fodder storage assets, and fencing incurred since the 2015 Budget was handed down.
Now is a great time for those who are thinking of starting a new business to take action.
This small business package delivers significant support that will allow immediate deduction of professional expenses incurred when starting a business. Our focus on small business is no passing fad.
We know that hard-working small business owners need the backing and understanding of government.
But as Small Business Minister Bruce Billson has said, there can be no substitute for customers. I encourage everyone to buy and shop locally, to help to boost jobs and grow our local economy.