The Budget 2016 has certainly been one targeted at small business owners. Basically, this was a budget for the tradies and small to medium sized businesses which is really Coalition heartland. Alright, what was announced tonight:
First of all that the company tax rate for small business will drop to 27.5 percent and the definition of small business has gone up to $10 million in revenue, that’s now the threshold.
Over the next ten years that revenue threshold will increase to include larger and larger businesses and at the end the company tax rate will be at 25%.
Immediate write off of equipment purchases valued up to $20,000 that will last until the end of June 2017, that will now apply to those businesses with revenues up to $10 million as well. Previously, it was only small businesses with revenues up to $2 million and now it’s up to $10 million.
Also one of the things I love about this budget is this push to get Australia’s youth back into the workforce. There’s a new jobs program and has three steps. First of all there’s skills training for the youth involved, then there’s the ability for them to become an intern in a business. The business will receive $1000 to take them on as an intern and the intern will get $200 a fortnight on top of their usual benefits and if the business decides to offer them a full-time job there’s a $10,000 incentive for the business to do it. So I think that’s a really sound, practical program to get youth into the workforce and give them experience and compensate business for taking on unskilled youth and giving them a go.
The economic outlook is very similar to the last twelve months with economic growth around the 2.5 percent mark and inflation around 2 percent. So it’s a good solid economy going forward.