On Tuesday, 10th May 2017, Federal Treasurer Scott Morrison handed down his second Federal Budget and the Australian economy is expected to rebound from the slowdown caused by Cyclone Debbie that hit the coast hard at the end of March this year.
The economy is expected to expand at a rate of 2.75 percent next financial year and 3 percent the following year. Treasury now expect a budget deficit of $29.4 billion in 2017/18 but project a surplus budget of $7.4 billion in 2020/21.
Unemployment is forecast to remain steady at around 5.5 percent and inflation is not expected to shift outside the Reserve Bank's 2 to 3 percent target range, meaning less pressure on interest rates.
The budget contained some positives for small business that we have documented in this newsletter including the Turnbull Government’s extension of the $20,000 instant asset write-off on depreciable assets. Businesses with a turnover of up to $10 million now qualify for this concession and it is proposed that companies turning over up to $50 million will have their tax rate reduced from 30 percent to 25 percent over the next 10 years.
In a bid to create jobs and grow the economy, the Government have also committed to investing $75 billion in key infrastructure projects over the next 10 years. These projects are focused around road, rail and airport investments. The budget also targeted Australia’s big five banks, multi-national tax avoiders, foreign workers and foreign resident investors, while making voter-friendly announcements in relation to health, education (particularly schools funding) and housing affordability.
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Other Articles in This Edition:
Some of the Biggest Mistakes Small Businesses Make With Their Websites
Small Business - $20k Small Business Immediate Tax Deduction
Small Business - Company Tax Rates
Small Business - Extension of Taxable Payments Reporting to Courier and Cleaning Industries
Small Business - Access to CGT Concessions
Small Business - Looking to Employ Foreign Workers?
Individual Tax Rates
Individuals - Changes to the Medicare levy
Restricting Residential Investment Property Deductions
Individuals - Higher Education Reform
Superannuation - Contributing Proceeds from Downsizing to Superannuation
Superannuation - First Home Super Saver Scheme
GST Changes - Purchasers to Pay GST on New Residential Premises
GST Changes - Digital Currency & Low-Value Imports
Tax Integrity Measures
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