FEDERAL BUDGET 2019: small business perks

Isaac Rankin

Managing Director Commercial and Private Banking, ANZ

As part of my job, I spend a lot of time talking to small business owners around the country. When I do, there are three things they tend to mention they want from government.

Click image to zoom Tap image to zoom

The first is around reducing tax burden, the second reducing red tape and the third making it easier to employ people. A couple of those ideas stood out to me as receiving attention in the 2019-20 Australian Federal Budget.

"People will have more money in their pocket than we would normally expect.”

Instant tax write-offs

We saw an expansion of the instant tax write-off arrangement to $A30,000 for individual assets across as many transactions as businesses might like. That also now covers companies turning over up to $A50 million - so it goes beyond small and medium businesses.

If you run a cafe or a restaurant putting in a new grill or coffee machine, or you’re tradesperson buying a new vehicle or other equipment, for example, I think there will be broad interest in taking advantage of these write-offs.

Reduced income tax rates

The second key point focused on reducing income tax rates for small businesses and accelerating reductions to 25 per cent over a much faster timeframe than previously indicated. I think that would be welcomed.

Employment boost

And the third which is applicable to most businesses - but particularly tradespeople - is around increased funding for apprenticeships (which will also help with employment for certain businesses).

Flow through

One extra bonus was around the reduction in personal income tax rates. This means people will have more money in their pocket then we would have been the case.

I'm sure a lot of business owners around the country will hope some of that extra cash will flow through to small businesses - a great outcome if that happens.

Isaac Rankin is Managing Director, Commercial at ANZ

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.