Tradies should be smiling today: Budget 2015

The 2015-16 Federal Budget was handed down last night by Treasurer Joe Hockey and one of the big winners to come out of it will be small business.

Hockey revealed the government will be releasing a $5.5 billion Jobs and Small Business package, considered to be the biggest small business package in our nation’s history.

What this means for small business owners with an annual turnover of less than $2 million, which is approximately 96% of businesses in Australia, is that from 1 July 2015, they will see a reduction in their tax from 30% to 28.5%. In his speech to the House of Representatives last night, Hockey said this tax rate is the lowest in almost 50 years. Unincorporated small businesses will receive a 5% tax discount, up to $1000 a year.

Another big move by the government for small businesses is the ability to immediately deduct new assets, aimed at promoting growth and innovation.

“We recognise that small business, in order to succeed, needs better cash flow and better tools for innovation as well,” said Hockey, in his Budget speech.

“So I announce that from 7.30 pm tonight, small business can claim an immediate tax deduction for each and every item they purchase up to $20,000.

“If you’re a tradie, it might be new tools or a computer for the home office. Cars and vans, kitchens or machinery… anything under $20,000 is immediately 100% tax deductible from tonight.”

Masters Electricians Australia CEO Malcolm Richards said he welcomes the range of business-friendly measures in the Federal Budget saying the $20,000 instant write-off for business purchases would allow electrical contractors and other building trades businesses to invest in tools and equipment needed to keep their workers safe and working efficiently.

Richards also welcomed a $6 billion commitment from the government to training and apprenticeships, underpinned by $664 million in funding for the Industry Skills Fund, to support more than 250,000 training places and support services, including skills advice for micro, small and medium businesses.

“Skills and training are the keys to the ongoing success of trades industries, so we welcome the Budget’s very strong commitment to this vital area,” Richards said.

The National Electrical and Communications Association (NECA) also welcomes the government’s efforts to help small business invest, hire and grow.

“Creating more jobs and growing the economy is essential to a prosperous Australia as well as a sustainable contracting sector,” said Suresh Manickam, the CEO at NECA.

“Small business is the engine room of the economy, so this is where the new jobs need to be created.”

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