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The 2017 Federal Budget’s Impact on Businesses
The recent delivery of the 2017 Federal Budget for Australian businesses has focused on two themes, adjusting infrastructure spending and the prospect of lowering taxes. The outcomes of these subjects have been met with a positive response particularly from small business owners who are happy to hear that the Government is providing support for them to pursue new ideas and invest in themselves while job creating.
As small companies are essential for economic growth being the backbone of the economy, the government has decided to extend the $20,000 instant asset write-off scheme to businesses with an up to $10 million annual turnover. This encourages an increase in investment and productivity, allowing small businesses to grow in confidence. As part of the Ten-Year Enterprise Tax Plan, the government has also noted they will commit to cutting the corporate tax rate for all businesses to 25%.
Adjusting work visas and upskilling Australians
Some of the public has questioned the decision to abolish the Temporary Work visa for foreign workers. When employers nominate workers for the new visas and certain permanent skilled visas, they are now required to pay a levy going towards a newly created Skilling Australians Fund. The establishment of this fund supports Australian skill development and the take up of apprentice or traineeships but there are concerns the extra compliance costs will affect some small businesses such as courier and cleaning industries.
Cutting red tape
Under the new National Partnership on Regulatory Reform, the government will be providing $300m over two years to incentivize states to reduce unnecessary restrictions on business. The decision to reduce red tape and regulation allows small businesses to stand on a level playing field in the market by increasing the access for resources and grants, decreasing business costs and allowing businesses more time to run and grow their business.
Improving infrastructure and supporting rural and regional Australia
The Federal Budget 2017 placed a big emphasis on the continuation of improving infrastructure through its notable investing activities plan. A 10-year allocated $75 billion-dollar infrastructure fund for road and rail investment is being established. This decision aims to boost demand in the short term then lift supply over the longer haul. The announced provision for ongoing funding of the National Landcare Program which is set to receive $1bn over seven years is another highlight for specifically rural and regional businesses.
With the aim to reduce unnecessary restrictions on business and decision to extend the tax cut allowing small business owners to thrive, although there is still room for improvement regarding numbers the response for the Federal Budget 2017 has been mainly pleasant with the Government’s overall aim to boost small business owners particularly and encourage overall business growth.