The third federal budget is out. Treasurer Scott Morrison has announced the budget, specifying in his speech that the budget will focus on helping small businesses to adjust to the changing economy and for them to focus more on growth. There are a lot of benefits in store for small business owners — and of one is the deadline extension of the claiming of tax deductions that cost under $20,000. Although there are benefits to look out for, there is one new penalty that they should become aware of. So, what should small businesses expect from the 2018 budget?
Aside from the fact that small businesses can enjoy a deadline extension for claiming assets costing up to $20,000, which will start on June 30, 2018 until June 30, 2019, and the announced low and middle-income tax offset, small businesses should be warned about the new policy that could lead to a removal of the tax deduction. The low and middle-income tax offset is a reduction in tax payable and is in addition to the small business income tax offset and low-income tax offset.
Under the new policy, which will take effect on from July 1, 2019, small businesses that did not indicate the correct amount of their Pay-As-You-Go withholding tax or by paying the cash to employees and contractors and not declaring the payment as income will lead to serious repercussions — not getting the tax deductions based on the amounts paid, which will also come with penalties levied by the tax office.
The surprises don’t stop there; small businesses can also enjoy an increased $300 per fortnight work bonus and will now be able to access the Commonwealth government pension loan scheme. The said scheme provides a loan through the equity of the lendee’s home to help fund their retirement living expenses.
Small businesses are actually essential for the country since it takes up a big chunk of the Land Down Under’s GNP. With that being said, business brokers victoria should also pay attention to these types of businesses since there might be buyers out there who want to buy a business and make it grow.