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Small Business Front and Centre in Federal Budget

Release Date: 12/05/2015
The engine room of the national economy, the small business sector, has received a much needed boost in the Federal Budget, according to the Illawarra Business Chamber (IBC).
“Five years ago, the small business community wasn’t even mentioned on budget night, but now it is front and centre of Budget commentary. In fact, this is a small business Budget,” said IBC CEO Debra Murphy.
“In 2013, the Chamber movement across Australia united to deliver its pre-election Small Business: Too Big to Ignore campaign which was aimed at sending a clear message to decision makers in our Federal Parliament that small business could no longer be taken for granted.
“Tonight is living proof that our campaign was an overwhelming success, with more than $5.5 billion allocated to supporting small business and 96 per cent of all Australian businesses eligible for a tax cut.
“Of particular benefit to small businesses with an annual turnover of under $2 million will be the cut in company tax rate by 1.5 per cent, and a tax discount of 5 per cent (up to $1000) to small unincorporated businesses.
“This may allow the small business owner to employ that extra apprentice, or extend the hours of a current employee.
“Measures announced in the Budget will provide great impetus for small business owners to take on new employees and work experience students. These measures are particularly welcome in the Illawarra where youth unemployment sits at around 17%.
“For the next two years, small businesses are able to immediately deduct the cost of individual assets under $20,000, which will allow business owners to spend much needed capital on their businesses, driving innovation and injecting funds into the economy. This also has the added bonus of reducing red tape as tracking assets across years was an unnecessary burden on business owners.
“Other measures, including the streamlining of business registration processes, changes to the tax treatment of Employee Share Schemes, easier access to crowd sourced equity funding and the deduction of professional expenses incurred at start-up, are aimed at making it easier for people to take the jump into starting their own small business.
“Illawarra businesses experienced deteriorating economic conditions and declining profitability in the first quarter of 2015. Local business confidence can be swiftly restored when these measures are passed through the upper house.
“On Friday the IBC is holding a Federal Budget lunch with keynote speaker Craig James, CommSec Chief Economist – tickets can be purchased by calling 4229 4722,” Ms Murphy said.
Media Contact:         Julia Frith 0417 135 858

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