As self-confessed tax law nerds and lovers of all things small business accounting, we geek out over changes in Australian tax laws. Now, we get that you might not be so passionate about the topic, which is fair enough. You're busy hunting for opportunities to grow your business and do things you’re passionate about. That’s why we’re here, to keep you across the changes in Australian tax laws that have significant impacts on SMEs.
Recent changes have made it easier for small businesses to access capital, invest in new equipment, and manage their cash flow. (Yay!) They’ve also helped to increase the competitiveness of small businesses and provide much-needed relief. So if you’re a small biz owner, keep crushing it and also take some time to understand these changes and how you can take advantage.
Reduction in the Corporate Tax Rate
One of the most significant changes to the tax laws for small businesses is the reduction in the corporate tax rate. In 2017, the government commenced a phased reduction of the corporate tax rate for small businesses. For businesses with a turnover of up to $50 million, the corporate tax rate has now been reduced from 30% to 25%. This reduction has provided small businesses with much-needed relief and has helped to increase their competitiveness.
Temporary Full Expensing (Instant Asset Write-Off)
Another change that has had a significant impact on small businesses is the introduction of the temporary full expensing (previously called the instant asset write-off) . This allows small businesses to claim an immediate deduction for an asset that is purchased and used for business purposes of any value (previously limited to $150,000). This change has made it easier for small businesses to invest in new equipment and technology, which can help to improve their productivity and efficiency. This measure is temporary and due to expire on 30 June 2023, so reach out to an asset finance expert to find out more .
Access to Capital
The Australian Government has also introduced changes to the tax laws that affect the way small businesses can access capital. For example, the government has made it easier for small businesses to raise equity through crowdfunding platforms , which can help them to access new sources of funding . Additionally, the government has also introduced changes to the tax laws that make it easier for small businesses to access debt financing, which can help them to grow and expand.
Talk to BlueRock About Small Business Accounting and Tax
Want to talk taxes with us? We’re all ears. From complex tax advisory to the mundane accounting tasks you want taken off your plate, our expert accountants and tax lawyers get excited about it all! So get in touch and loop us in on your business adventure.
