Federal treasurer, Scott Morrison, says it’s time to ‘back small business’. Earlier this week, the Australian government released its proposed 2017 federal budget.
As many of you know, the Australian Parliament will be discussing and debating these Budget measures for weeks to come. As a result, some of the aspects below may move forward and others may not.
Overall, at Intuit we welcome budget initiatives that stimulate small business growth. I regularly connect with Intuit’s small business clients through the ‘follow me home’ program, and I often find that “a constant pain point for them is regulatory compliance”. Small businesses want to do the right thing, “but they often feel swamped by the demands put on them by various compliance burdens”.
This budget proposal is a great first step to helping small businesses overcome the hurdles to growth.
Now, let’s take a look at what’s important to small businesses in these Budget measures.
Okay, good news. They’re proposing to extend the asset write-off scheme
The popular tax-write off scheme will be extended for another year. A bid to generate investment and productivity in small to medium business, the proposal allows the 12-month extension to continue to allow businesses to instantly write off purchases up to $20,000.
Until these Budget measures, the scheme was only available to businesses with an annual turnover of under $2 million. However, with the proposed expansion of the threshold, businesses with an annual turnover of up to $10 million can benefit from the initiative.
Need equity funding? Crowdsource your capital
Under the proposal, the government would make it easier for start-ups and innovative small businesses to raise capital.
The budget is proposing to extend crowd-sourced equity funding (CSEF) from unlisted public companies to private companies. This move is aimed at helping small businesses to easily access equity to grow via innovative fintech platforms.
Snip snip. They’re cutting the red tape
State and territory governments will be allocated $300 million as an incentive to ‘reduce red tape’ compliance under these Budget measures. This could mean it’ll be easier for your small business to get sign-offs on anything from building requirements to getting that cafe off the ground.
Additional funding for training for Australians
The government announced they’re launching a $1.5 billion fund to upskill Australians.
The initiative will help prioritise training of locals for occupations in high demand, occupations with a reliance on skilled migration pathways, industries of future growth, trade apprenticeships, and training in rural areas.
Intuit helps empower small businesses to take control of their financial lives. We look forward to continuing to work with the government as these initiatives move forward. We are encouraged by these proposals in helping small businesses grow.
Image courtesy of BBC