The Budget includes a range of measures, including tax changes, funding for employers and help for farmers.
Here’s a summary of the key changes that will affect businesses.
Jobs and Small Business package
For small businesses with a turnover of less than $2 million per year, the following tax changes were announced as part of the package:
Company tax rate decrease – reduced from 30% to 28.5%.
5% tax discount – for businesses that aren’t a company.
Asset deductions – immediate depreciation of any asset costing less than $20,000 which you buy from the night of 12 May 2015 until 30 June 2017.
Fringe Benefits Tax changes (FBT) – you’ll no longer need to pay FBT on any portable electronic devices that you provide to your employees for work purposes.
Capital Gains Tax (CGT) changes – you’ll be able to rollover your CGT liability if you change the legal structure of your small business.
Deductions of professional costs – you’ll be able to immediately deduct professional costs related to starting your small business, such as legal and accounting fees.
Measures to help employers were also announced as part of the package, including:
Work experience placements – opportunities for employers to offer work experience placements to unemployed job seekers.
More flexible wage subsidies – including Restart, Youth, Long Term Unemployed and Tasmanian Jobs wage subsidies.
Help employing older workers – improved access to Government support when you employ older workers.
Want to know more about how these measures apply to your business? Check out our summary of the Jobs and Small Business package.
Help for farm businesses to recover from drought
Financial counselling – funding in 2015-16 for ten more counsellors through the Rural Financial Counselling Service.
Pest management – funding over four years from 1 July 2015 to help farm businesses manage pest animals in drought-affected areas.
Infrastructure – funding over four years for a local council grants programme. The programme will fund infrastructure projects in drought-affected areas.
Investment in job creation – funding over four years to attract job-creating investment in the infrastructure, tourism, resources and energy, agribusiness and food, and advanced manufacturing, services and technology industries.
Loan schemes – funding extended for one more year to continue the Drought Concessional Loan and the Drought Recovery Concessional Loan Schemes.
Support services – funding to provide existing social and community support services for farmers in 70 local government areas.
Immediate tax deduction for water facilities from 1 July 2016, such as dams, tanks and bores.
Immediate deduction of fencing costs from 1 July 2016.
Depreciation of capital expenditure on fodder storage assets, such as silos and tanks, over three years from 1 July 2016.
More business-related changes
Help competing with overseas businesses – the goods and services tax (GST) will apply to digital products and services that are imported by consumers. This will help make domestic businesses more competitive compared to overseas businesses.
Cap on Research and Development (R&D) Tax Incentive offsets – a cap of $100 million on the amount of eligible R&D expenditure for which a company can claim a tax offset at a concessional rate.
Banana levy increase – starting 1 July 2015, the Emergency Plant Pest Response levy will be 0.75 cents per kilogram to help repay the banana industry’s debt related to the eradication of banana freckle.
Budget 2015-16 in full
For a full copy of the Budget and details on all of the initiatives above and other measures not specific to business, please visit the Budget 2015-16 website .