Tax breaks, traineeships and tackling tax cheats among changes in Budget 2017

SMALL business owners will benefit from tax changes and other plans outlined in Budget 2017.

A new $1.5 billion training fund will target apprenticeships and traineeships.

SMALL business owners have been given an extra boost in Budget 2017 with the government proposing a number of changes that will benefit small operators.

Recognising that small companies are the backbone of the economy and essential for economic growth and job creation this year’s Budget aims to build on the tax and other benefits it has already announced.

Last year the government cut the corporate tax rate to 27.5 per cent and extended the threshold of eligible businesses to a turnover of $10 million.

“Partnered with our recently-delivered tax cut for small business and extending the definition of small business to benefit more enterprises, this investment continues the Government’s support for small business to pursue new ideas, invest in themselves and create more jobs,” Small Business Minister Michael McCormack said.

In addition, incentives worth $300 million are to be delivered to the states and territories in order for them to cut costly regulations and compliance for small business.

“No matter where I have travelled or whom I have met, red tape is top-of-mind for small business,” Mr McCormack said.

Here are the changes you need to know about:

1. Tax breaks.

The government is extending the $20,000 instant asset write-off to businesses with annual turnover of up to $10 million for another year (until 30 June 2018)

2. Cutting red tape for business.

It will establish the National Partnership on Regulatory reform and provide $300 million over two years to the States to reduce unnecessary restrictions on business.

3. Upskilling Australians.

Starting the Skilling Australians Fund and providing $1.5 billion over four years to State and Territory governments for training, particularly apprenticeships and traineeships.

4. Tackling the black economy.

Cracking down on contractors in the courier and cleaning industries and banning technology that allows business to falsify sales records and avoid paying tax. This will benefit legitimate businesses who have been missing out on contracts because their wage costs are higher than those operating in the cash economy

Small businesses can keep writing off assets worth up to $20,000 for another year.

While not directly targeting small business the following measures will boost the economy and provide opportunities and savings for existing small businesses and may encourage the creation of new businesses:

5. Improving infrastructure.

Establishing a $75 billion infrastructure fund to fund road and rail investment over the next 10 years.

6. Supporting rural and regional Australia.

Boosting investment in regional Australia with the $2 billion National Water Infrastructure Loan Facility and the $2 billion Farm Business Concessional Loan Scheme and investing $24 million into Rural and Regional Enterprise Scholarships.

7. Tackling the rising costs of power and gas.

The government had already announced the plan for the Snowy Mountains Scheme to boost power generation capacity by 50 per cent. It will also spend $90 million to address short-term gas supply issues and work with State and Territory government to improve domestic gas markets.

This News Corp Australia article is published here in partnership with Suncorp

Originally published as Tax breaks, traineeships and tackling tax cheats among changes in Budget 2017