BACKING small business
Did you know that over 650,000 West Aussies are employed by small businesses? Australia’s economy is built on the hard work of small business and there are almost 14,000 in our local community of Pearce. I recently caught up with Rupert and Rebecca to see how the Government can continue to support our vital small business sector - check out the videos below.
The House of Honey - Herne Hill
Born in Kenya, Rupert developed a keen interest in bees from a very young age, keeping a close eye on a colony of bees at his family's farm. It has been a life-long dream of Rupert's to open a dedicated honey shop and cafe for people to experience the many types of honey and learn about bees.
In 2010, Rupert and his wife, Kim, turned that dream into a reality when they opened The House of Honey and The Sticky Spoon Café in Herne Hill. Watch to find out how Rupert and Kim took advantage of the Liberal Government’s policies designed to help small business grow.
Quinns Shack - Quinns Rocks
Quinns Rocks locals Rebecca and husband, David, purchased the Quinns Beach General and Liquor Store earlier in 2017 with a view to revamping the beachfront location. They have turned it into a fantastic community space with live music, gourmet food, coffee and a gift shop, showcasing the work of local artists and designers.
To see what's next for Rebecca and David and to find out how the Liberal Government is easing the pressure on small business, check out the video. And if you're in the area, be sure to stop by! You can also find Quinns Shack on Facebook here.
Support for your small business
You may be eligible for grants and assistance designed to help small business.
Immediate deductions for small businesses
The Government’s Ten Year Enterprise Tax Plan allows businesses with turnover up to $10 million to access a number of small business concessions, including immediate deductions for assets costing less than $20,000. The Government has passed legislation that extends the $20,000 instant asset write-off for a further 12 months to 30 June 2018. This means these businesses can deduct the full purchase price of eligible assets from their income for another year to 30 June 2018, reducing their tax burden for that year.
Offers assistance and tailored support to entrepreneurs and small and medium businesses to improve their capability and competitiveness. Eligible businesses can receive support through four elements: business management; innovation connections; incubator support; and accelerating commercialisation.
Unincorporated Small Business Tax Discount
The Government’s Ten Year Enterprise Tax Plan increased the tax discount for unincorporated small businesses from 5 per cent to 8 per cent in 2016-17 and increased the turnover threshold from $2 million to $5 million. The maximum discount will remain capped at $1,000 per individual per income year.
Tax Incentives for Early Stage Investors
The tax incentives provide eligible investors with a 20 per cent carry-forward non-refundable tax offset on investments made in qualifying early stage innovation companies (capped at $200,000 per investor, per annum) as well as a 10 year capital gains tax exemption for eligible investments made in qualifying early stage innovation companies held for at least 12 months.
Tax cuts for small business
The Government’s Ten Year Enterprise Tax Plan reduced the tax rate for incorporated businesses from 28.5 per cent to 27.5 per cent effective from 2016-17, while increasing the turnover threshold that businesses need to be under to qualify for the lower rate from $2 million to $10 million. This threshold will progressively rise over time to $50 million in 2018-19. The tax rate will then be phased down to 25 per cent by 2026-27.
Find more measures designed to help small businesses
Our 10 Year Enterprise Tax Plan
The Liberal Government’s Ten Year Enterprise Tax Plan will support growth, higher wages and jobs by lowering the tax rate for companies over time to an internationally competitive level. We have already:
- Cut small business company tax rate to 27.5% for small businesses with a turnover less than $10 million
- Extended access to the instant asset write off so that small businesses with a turnover less than $10 million can instantly deduct each and every asset under $20,000
We will continue to support small business by:
- Progressively lowering the company tax rate to 25% by 2026-27
- Providing incentives to States that reduce unnecessary regulatory restrictions on competition and small businesses
Labor’s Alternative Tax Plan
Labor has no plan for small business other than to roll back tax cuts, putting a handbrake on jobs and growth. So far, we know Labor’s alternative tax plan includes:
- Rolling-back small business tax cuts
- Imposing a 30% tax on trust distribution
- Increasing taxes on families, singles, retirees and small business owners by more than $150 billion