Small Business Welcomes Budget
Surplus, Tax Cuts and Calls for Corporate Tax Rate Acceleration.
The Whitsunday Coast Chamber of Commerce and CCIQ
welcome the announcement of a budget surplus for the first time in a decade.
The Federal Budget papers revealed a surplus of $7.1 billion a year earlier
than originally forecast and at a time where receipts from Australia’s mining
sector continues to support the economy with the nation’s finances benefitting
from higher commodity prices.
Income tax relief, is a positive for the nation’s
workers and a boost amidst a backdrop of weakening business confidence and
Some of the key take-outs of the
Federal Budget that are relevant to small business.
OVERALL BUDGET OUTLOOK
Total revenue for 2019-20 is expected to
be $513.8 billion, an increase of 3.6% on 2018-19.
Total expenses are expected to be $500.9
billion, an increase of 2.8% on expenses in 2018-19.
The instant asset write-off scheme will be increased from
$25,000 to $30,000, which businesses with an annual turnover of $50 million can
use each time they purchase new assets.
Higher tax discount rates for unincorporated small
businesses up to $1,000, to 13% in 2020-21.
SKILLS AND TRAINING
The Budget includes
$525 million for a skills package, which in part is designed to help create
80,000 new apprenticeships in sectors with skills shortages.
Businesses that hire apprentices in
these industries will receive incentive payments worth $8,000 per placement.
The program includes a $2,000
incentive payment for apprentices.
Increasing infrastructure investment
to $100 billion over the decade, including
Bruce Highway at $10 billion.
M1 Pacific Highway at $1.2 billion.
Beerburrum to Nambour Rail Upgrade
at $390 million.
Brisbane Metro at $300 million.
Melbourne to Brisbane Inland Rail
total funding at $9.3 billion
Immediate and targeted relief to
Australian farmers dealing with natural disasters.
New $3.9 billion Emergency Response
$300 million in grants for
$1.8 billion in low-cost loans to
support banks offering lower interest rates to flood-affected farmers.
$6.3 billion in assistance and
concessional loans to support farmers affected by drought.
Investing $3.9 billion in the Future
Tax relief for low and middle-income
earners up to $1,080 for singles and $2,160 for dual income families.
32.5% rate will be lowered to 30% and 37%
rate will be abolished in 2024-25.