The federal government has done well to recognise the importance of small business in its second budget with a raft of tax incentives designed to boost the economy.
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If business can find the money in its books after the tax breaks, it could well mean more jobs.
Small companies with an annual turnover up to $2 million will pay tax at 28.5 cents in the dollar, down from 30 cents, from July 1.
Non-incorporated businesses will receive a 5 per cent tax break on their taxable income capped at $1000. Both are welcome measures in Maitland where the super storm and flooding hit businesses hard.
For small businesses with money to spend, the budget makes this an opportune time to invest in new equipment. These small businesses can claim up to $20,000 and effectively reduce the tax they pay.
Machinery, computers and office equipment are all claimable purchases as long as they were made after 7.30pm on budget night.
For our farmers around Maitland, of which there are still thankfully a few, they too can claim certain expenses from July 1, 2016. Fences and water supplies will carry healthy deductions.
Farmers will also be able to claim depreciation on silos.
These measures are, ironically, designed to help farmers better cope with drought.
This budget is more moderate than the last, which means the government can and should do more in the years to come in some key areas. Work is already afoot to identify the Hunter’s business strengths so that the government can funnel money to emerging industries.
We can only hope that the federal government follows through on this when this region is so vulnerable to fluctuations in coal prices.
