fbpx

What does the 2019 Budget mean for your business?

 

After yesterday’s budget there is a wealth of information circulating about what changes affect who and how. As a small business owner you may be wondering what came out of the debacle that will actually affect your enterprise.

Financial relief for small business has been promised in the past two budgets and yesterday’s announcement seemed to renew that sentiment.

A budget that’s catch cry has been “a stronger economy that benefits you” came out on top with a $7 billion surplus and had multiple implications for Australian SMEs.

“The engine room of the economy,” is was what treasurer Josh Frydenberg called small Australian businesses in yesterday’s federal budget announcement.

“We want small business to prosper, and we are backing them to do so,” said Frydenberg before announcing tax rate cuts planned to roll out over the next two years. A reduction from the current 27.5% to 26% tax rate by 2020 was announced as a win for small business owners, with a further reduction to 25% planned for 2021.

The asset write off threshold was next in line with SMEs now having the option to write off eligible assets under $30,000 value before the extended deadline of 30 June 2020. A dramatic increase from the recent $5,000 threshold increase announced in January from $20,000 to $25,000.

Frydenberg stated the increase as a chance for  “a cafe to get a new fridge or grill, a plumber to buy new tools or a courier a new van.” So, there you go- let’s see how these changes come into play coming up to the federal election.