This month, the Australian government released their 2017-18 Federal Budget. We take a look at what the new announcements mean for your business.
Instant asset write-off
"Small businesses are particularly pleased to see the highly successful instant asset write-off extended to June 2018," says James Pearson, CEO of the Australian Chamber of Commerce and Industry.
Are you turning over less than $10 million a year? If so, you can write off expenditure up to $20,000. This provision was already in place, but it’s been extended, so you can take advantage of it until 30th June 2018. Have a chat to your accountant if you reckon you haven’t been writing off everything you could be.
The government has also extended the small business CGT concessions for small business taxpayers with aggregated turnover of less than $2 million or business assets less than $6 million.
These concessions include the 15-year exemption – if you’re close to retirement, you can write off the capital gains on assets sold that are over 15-years old.
You can also roll over or defer all or part of a capital gain for two years. Your accountant will have all the details, so much sure you check you’re taking advantage of this.
Skilling Australians Fund
There’s good if you’re employing apprentices.
The government announced an initiative to help keep jobs in Australia. Companies sponsoring migrant workers will be required to pay a levy. These collected levies will create the “Skilling Australians Fund.”
This fund will be used to help pay for Australians to get training, including apprentices in the trades. Keep an eye on your state news for information on how this fund will be used.
The foreign worker levy will be $1,200 or $1,800 per worker per year on temporary work visas and a $3,000 or $5,000 one-off levy for those on a permanent skilled visa.
"We welcome the Skilling Australians Fund's efforts to improve the skills of the Australian workforce, particularly via apprenticeships,” says Peterson, who also stresses the importance of migrant workers for sustaining Australia’s economy.
Talk to your accountant to make sure you’re taking advantage of these opportunities.
Do you stand to benefit from any of the budget announcements? What do you think about new initiatives like the Skilling Australians Fund? Share your thoughts in the comments or on FB.