A new era for Australian small business

Thursday 28 May 2015:

The Government’s 2015 Budget is a historic, unprecedented and a ‘game changer’ for the hard working women and men of Australian small business.

Our Growing Jobs and Small Business package is the biggest economic recognition of the sector in Australia’s history, and today I am introducing the first tranche of legislation to deliver that package.

Small business has been and continues to be an enduring focus and priority for the Abbott Government. We are committed to working to ensuring Australia is the best place to start and grow a business.

The Tax Laws Amendment (Small Business Measures No.1) Bill 2015 will reduce the corporate tax rates from 30 per cent to 28.5 per cent for small businesses with annual turnover under $2 million.

It is estimated that up to 780,000 companies could benefit from this measure.

Small business companies will pay less tax for income years that commence on or after 1 July 2015.

The Tax Laws Amendment (Small Business Measures No. 2) Bill 2015 will provide accelerated depreciation arrangements to small businesses and primary producers. This change is the centrepiece of the Budget’s small business package.

The Bill will amend the small business simplified depreciation rules in the tax law, to increase the threshold for immediate deductibility from $1,000 to $20,000.

This is a significant increase in the threshold and a massive gain to cash flow for small business.

Our budget measures reflect our understanding of the complex nature of small businesses across our country. Small Businesses are at the very heart of rural and regional Australia and with this is mind the Bill will also amend the tax law to provide simplified accelerated depreciation rules for all farmers.

Farmers will be able to immediately deduct all eligible capital expenditure on fencing and water facilities. Fodder storage assets will be deductible over three years.

We are simplifying the tax system for farmers, and encouraging investment that will improve our farming community’s resilience to drought and other extreme weather events.

The accelerated depreciation arrangements for farmers and small business can be claimed for expenditure since Budget night.

The Government intends to seek passage of this important legislative package in the current sittings of the Parliament. I encourage Labour to ensure the certain passage of this legislation to guarantee solid footing for small businesses no matter what their structure or location, to grow and prosper.