#Budget2015 – Wavy Growth and Small Business Wins

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Starting with a wavy voice The Treasurer, The Hon Joe Hockey MP, introduced #Budget2015 with a focus on the Jobs and Small Business package.

Apparently Joe Hockey gets asked regularly where the new jobs will come from and his answer includes …

…higher education, tourism, health care and financial services.

Small Business and Startups

For small business and family business, this package aims to help grow small businesses into big business.  The package includes a tax cut from 1.7.15 for those businesses with less than $2 million turnover (companies and unincorporated businesses).

Clearly the government believes that there are opportunities for small businesses with the demand for exports to China.  “Exporting skills is the growth opportunity with $6 billion in trade agreements with China, Korea and Japan then India.”

From 7.30 pm tonight an immediate tax deduction will be in place for every item up to $20 000 (instantly written off).  When starting a new business there is the option to deduct costs or tax relief when restructuring existing businesses with more details to come soon.

The employee share scheme will be expanded and for innovative startups, new opportunities to crowd source funding.  The fringe benefits tax will be abolished on mobile/portable devices used for work with $255 million put aside to make government agencies simpler to deal with.

Startup smart identified that there is a missed opportunity to support measures that will help educate the next generations of entrepreneurs, for example programs like BO$$ camp.

Australia’s North

Australia’s North was described as the frontier for economic development with new infrastructure to build and grow – $5 billion new infrastructure facility, private-public partnerships for ports, roads, water and electricity infrastructure.

Families

Families got $38 billion for support which will need more analysis and child care was allocated $3.5 billion to reform the system to encourage more people to participate in the workforce but jobs growth will need to match this strategy.

Farmers

For farmers an investment of $300 million is allocated for areas in drought, with immediate tax deductions for investment in water, fodder storage and new fencing with more details to be released after further consultation.

Jobs

Jobs got a big headline and it is true that the level of youth unemployment is unacceptable.  Measures included:

  • $330 million for young and disadvantaged
  • $212 million youth transition to work program
  • $106 million intensive support trials for job seekers
  • national work experience program;
  • $1.2 billion wage subsidy pool following consultations & reshaping program including the Restart program

But this all misses entrepreneurship for young people!

Tax

With superannuation the promise of no new taxes and from 1.1.17 tightening of the pension eligibility for those with higher level of assets.

A Google tax targets 30 large multinationals that may have diverted profits and will this have an impact on the workforce and possible expansion?

Netflix tax mandates foreign businesses supplying services into Australia that will now need to pay the GST.  Those on working holiday and backpackers will no longer have a tax free threshold.

FIFO and DIDO workers may be impacted by tax changes as well as business entertainment expenses and work related car deductions.

Final words

Joe Hockey said this budget is, “…for small business people that want to innovate and grow, young people to get a foot in the door, parents who want to work, startup businesses, stronger, safer, get out and have a go!”

#Adelaide #startups got a mention too!

May 2015

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