What will be in the Budget for small business?

Budget Time

Budget Time Source: AAP

Last year, small businesses were among the biggest winners in the Federal Budget following a reduction in the company tax rate, but some operators say it is not enough. Many say they are hoping the Government will not tinker with the superannuation system and will reduce bureaucracy for them in the upcoming Budget.Anita Barar presents Ricardo Gonclaves's report...


Last year's budget centrepiece was a reduction in the company tax rate from 30 per cent to 27.5 per cent for those small businesses with a turnover under $10 million dollars.

 

It only passed the Senate last month. (april)

 

That rate will fall modestly in coming years, with larger and medium-sized businesses to benefit as part of the Government's 10-year company tax plan.

 

KPMG Enterprise Tax Partner Brett Mitchell says over 60 per cent of KPMG's clients maintain that reduction will not make a material difference or has not gone far enough.

 

Tinkering with the superannuation system is also an issue.

 

Many small-business owners are already grappling with changes like the recent reductions in before- and after-tax contributions.

 

Martin Fahy, chief executive of the Association of Superannuation Funds of Australia, remains opposed to accessing superannuation for a home-loan deposit.

 

But he says he would like to see minor adjustments from the Australian Taxation Office. (ATO)

 

Some small-business owners say they also want the system communicated to them better.

 

Anas Ezmigna and Penny Saris say they were able to update their equipment, thanks to an increase in the instant-asset write-off threshold.

 

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