Federal Budget 2020: Gold Coast businesses to save millions through asset write-off scheme
Gold Coast businesses are set to save millions of dollars under a new scheme which has been branded “awesome” by city leaders. SUBSCRIBE TO FIND OUT HOW.
Business
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SMALL businesses are the big winners from the Federal budget, with billions in incentive schemes and tax cuts on offer.
Treasurer Josh Frydenberg last night unveiled a range of measures to get struggling businesses back on their feet after the COVID slump, led by “the largest set of investment incentives any Australian Government has ever provided”.
Mr Frydenberg called the private sector the “the engine of the Australian economy.”
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“(More than) 99 per cent of businesses will be able to write off the full value of any eligible asset they purchase for their business,” he said.
“This will be available for small, medium and larger businesses with a turnover of up to $5 billion until June 2022. It is a game changer, it will unlock investment and it will dramatically expand the productive capacity of the nation and create tens of thousands of jobs.”
Other measures include:
* The JobMaker hiring credit payable for up to twelve months and immediately available to employers who hire those on Jobseeker aged 16 to 35. It will be paid at the rate of $200 per week for those aged under 30, and $100 per week for those aged 30 to 35.
* Fringe Benefits Tax will be removed for many businesses. Companies with turnovers of $10 million to $50 million will be able to access up to 10 small business tax concessions.
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Gold Coast Central Chamber of Commerce president Martin Hall welcomed incentives.
“This budget is awesome news for businesses, particularly with the tax breaks and the JobMaker hiring credit scheme,” he said. “It’ll be really interesting to see how the fringe benefits tax changes weigh up against unemployment rates while the asset write-off scheme is fantastic and will free up huge amounts of capital for Gold Coast businesses.”
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Signal Group founder and CEO Graham Budinger, who runs a Coomera-based business supplying personal ID and security solutions and branded merchandise, said his company would use the instant-asset write off to buy more manufacturing equipment.
But he criticised a lack of focus on supporting mature workers to get back into work.
The focus on manufacturing sectors was too narrow, he said: “Its defence, space and medicine but there doesn’t seem to be an investment in robotics manufacturing.”
Tax lawyer Andrew Antonopoulos runs Gold Coast start-up Synnch, which aims to make the research and development process easier for businesses to access.
There was plenty for small business to like about the budget, he said.
“They have kept research and development tax credits as with improvements for small and larger businesses. It creates opportunities for business to progress and pursue innovation that people are doing with a level of comfort and certainty that the Government supports them.”
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