According to the Council of Small Businesses of Australia (COSBOA), the new federal budget changes have been applauded by small businesses for providing a boost in confidence and optimism for the new financial year.
From 1 July 2015, small businesses will see their tax rate fall from the current 30 per cent to 28.5 per cent. The good news continues; with small businesses, which aren’t operated through a company, also getting a tax cut.
In addition, sole traders, or businesses which operate through a partnership, trust or other non-corporate entity will get a 5 per cent discount (in the form of a tax offset throughout the year-end tax return) on the tax payable on their profits, up to a maximum of $1000 per individual.
Yet despite these changes, Peter Strong, CEO of Council of Small Businesses of Australia (COSBOA), says there is still a way to go with providing equality and support for small business, and advises against complacency.
“We will continue to work with the Treasurer to implement the changes needed to the tax system, which can hopefully be achieved in the tax white paper,” Mr Strong commented.
“The development of a performance framework for federal regulators also provides us with the opportunity to work more closely still with key regulators so that the right compliance is achieved with the least impact on small businesses.”