Finally after some much needed discussions and bargaining the Federal Government it seems has been able to get most of its small business tax cuts through parliament with the commencement date for the increase in the company turnover threshold to $10 million from the 2016/17 financial year. What this means practically is that entities which have previously failed the turnover test can now make use of accelerated depreciation pooling and the $20,000 instant write off for assets purchased pre 30 June 2017. Plus companies also get the added benefit of reducing the small business company tax rate from 28.5% to 27.5% for this current year.
The 2017/18 year will see the company turnover threshold to $25 million and then for the 18/19 year to $50 million.
One downside of these rules is that we are now playing with 3 turnover thresholds for small business entities depending on the structure and the tax situation instead of 1. So much for tax simplification!
Let us know if you need further information.
Deakin Business School and the Geelong Chamber of Commerce recently released their 2016 business trends survey for the Geelong Region. The survey were the results of 153 businesses responding to the certain questions put forward to them. The key takeaways were:
- An upward trend in the overall confidence of Geelong businesses
- A slight decline in Geelong businesses expecting an increase in sales but profitability is expected to remain the same
- Employment expectations increased substantially
- Similar future investment expectations as in previous years
- Local Government leadership, policy and support and competition are the 2 top barriers to growth.
If you require further details or wish to obtain a copy of the report please contact Bernadette Uzelac at the Geelong Chamber of Commerce on 5222 2234.