The Budget Tax Cut and What It Means for Foodservice Businesses
The 2015 tax budget has arrived and is fast making its way into conversations across coffees, dinners and morning teas. Along with its ups and downs there was one very significant update that has many a small business quite excited.
This is, of course, the immediate tax deduction for any individual assets costing less than $20, 000. Valid until June 2017, this new legislature applies to small businesses (business with an annual turnover less than $2 million) and put simply means businesses will be able to apply for tax deductions on as many purchases under $20,000 as they like.
It’s a huge jump from the previous limit that was $1,000. In short, it’s the government’s way of encouraging small businesses to spend, because as treasurer Joe Hockey sees it, small businesses will be the “engine room of innovation” for the Australian economy.
By small businesses spending on infrastructure and resources, growth almost comes without asking. Instead of having to raise capital through loans or capitalization, business can use their profits to build their business without worrying about tax stings.
Small businesses make up 97% of the Australian economy (Australian Bureau of Statistics), so this budget announcement is no small step for the Australian government, and no small nudge about where their intentions for the future of the country’s economy lie.
For the food industry, it means deliberations over buying new equipment to grow kitchens, warehouses or skills are made a lot simpler. The possibilities for growth are expanded, which means innovation comes a lot easier.
So, prepare yourselves, because the world of food for Aussie small businesses just got a whole lot more exciting!
Visit Fine Food Australia in Sydney this September to find new equipment for your business – register here.