With the 2019 Federal election now behind us, the Australian business community can finally ‘take a deep breath’ and commence their evaluation of the many economic policy initiatives and promises – as outlined by the returning of the Liberal National Coalition government. In line with the LNP pre-election commitment, a tax relief plan that will benefit 3.4 million businesses and over 7 million Australians. A reduction in corporate tax rates for small and medium-sized businesses (with a turnover of up to $50 million a year) from 30% to 27.5 – further reducing to 25% in the coming years.
Among other planned changes, business owners will also see:
- Investment Guarantees, allowing a 20% deduction on new eligible asset worth
- An increase in the instant asset write-off threshold from $25,000 to $30,000
- Corporate tax discount of 8% (capped at $1000), increasing further to 16%
- Simplified Business Activity Statements and other red tape relief initiatives
- Better access to cheaper finance and equity funding
- Penalties for unfair/illegal terms to be included within small business contracts
- Changes to competition law, stopping big business from abusing market power
These initiatives will further strengthen the Australian Small Business trading and investment outlook, with the ASX All Ordinaries up by almost 2.5% (+$33b) since election day. First Choice Business Brokers, together with our many Vendors and Buyers is certainly encouraged by this positive news.
Please make sure to check out the First Choice Business Brokers website for a more comprehensive summary of the planned Small Business legislative initiatives, together with detailed list of our current business investment opportunities.
If you are selling or buying, make sure to telephone us on (03) 9899 1888 for a confidential discussion with one of our experienced Business Broker professionals.