Australians should be on a high after the country’s 2015 budget. It favoured the small business with the intention to assist them in growth. By definition, a small business is one that employs 20 or less people and is usually owned and run by the business owner. With the immense amount of information and access to products and services over the Internet, starting a business has never been so easy. If you are thinking about going into business, now is definitely the time.
The Budget announcement now allows for small businesses to immediately claim 100% of their business-related expenses with a cap of $20,000. At present, the previous threshold was $1,000. A business owner must have an ABN or Business Number, be duly registered, and have an income of $2 million or less. In short, you can buy business equipment, supplies, or even purchase a portable storage shed and not have to pay as much in taxes. Imagine this saving money on tax and increasing your property’s value!
The list of business items allowed by the government includes motor vehicles, coffee machines, refrigerators, kitchen and office furniture, portable buildings, carpets, copiers, computer equipment, pumps, heater, solar panels, air-conditioners, water tanks, security systems, and even sound system, among others.
According to the country’s Treasurer, Joe Hockey, Australia’s cash deficit is AUS$35.1 billion, down from the the2011-2012 figure of $43.7 billion but higher than the target of $29.8 billion for 2014-2015. Hockey said in an interview that global demand was weaker than expected resulting in “lower commodity prices and falling revenue.” He added that with careful planning, Australia’s economy compared to other developed countries has grown impressively in spite of the global challenges.
This new budget is also aimed at striking at the heart of Australia’s economy – the people. By giving Australians more incentives to start their own home business, business confidence should improve even more while addressing the deficit.
In a nutshell, the winners in this year’s budget are:
- Small businesses who get a 28 to 30% tax rate cut or a $1,000 tax discount
- Small businesses with less than $2 million turnover can avail of a $20,000 tax deduction for business expenses
- Tax breaks for start-up employees who get company shares as part of their benefits
- No fringe benefit tax for small businesses on portable electronic devices
The benefits for small business owners is that they will have more capital to spend on their business needs which will allow them to expand and improve their business. To free up space in your home, you can buy a portable shed or cabana to keep any business-related documents/items safe. It will give you the needed extra space for you and your business as well as a means to separate business items from family life even if it is just a few steps away.
Not many understand that the cabana, which is also called a backyard studio, is not the same as a granny flat. The cabana does not require council approval, comes with a 10 year structural warranty, and is not as expensive to set up as the granny flat. The cabana or shed can also be customised to fit your needs which means you can add internal partitions, shelving or in some cases even amenities.
With Melwood cabanas and sheds which are 100% made in Sydney, you are guaranteed a high level of craftsmanship. Your timber studio will not disintegrate or rot with our 10 year structural warranty. Your backyard studio is ready to withstand most harsh weather conditions.Thinking about moving? No problems, you can take your shed or cabana with you. They are fully transportable.
A win, win all round. Love this new tax break, love your new space.
There is no better time than now to purchase extra space for your business. Do you need to offset tax for this financial year? Great, we can help. Take advantage of this new tax break now!
Contact us today or navigate to our Download Pricelist page for information on our product range.
Financial disclaimer-The information provided in this post is general information only. Before acting on this information you should consider the appropriateness of the information, having regard to your own objectives, financial situation and needs. Please consult a professional in that taxation field before proceeding with your purchases that you may use for deduction purposes.
[email-download download_id=”13″ contact_form_id=”4″]