Supporting Australian small businesses

Supporting small business

Despite the current resources boom, the uneven nature of growth in our patchwork economy means that not all small businesses are prospering.

The Government recognises this and is already introducing lower and simpler small business taxes by allowing instant write off for all assets costing less than $5,000 from 2012‑13. Simpler depreciation will apply to long‑life assets as well.

The Government is also introducing, from 2012‑13, an early reduction in the company tax rate to 29 per cent to allow small business companies to reinvest and grow.

Additional taxation benefits

The Government will allow small businesses to claim up to $5,000 as an immediate deduction for motor vehicles acquired from 2012‑13. The remaining cost is depreciated at 30 per cent (15 per cent in the purchase year), which was the previous treatment for the entire cost of the motor vehicle.

Cars and vans are often a small business's main asset, so an immediate write‑off on motor vehicle purchases will assist with this significant cost.

The Government will also reduce Pay As You Go instalments for 2011‑12 for the majority of small businesses providing a $700 million cash flow benefit.

These measures will reduce tax payable or improve cash flow for up to 2.7 million small businesses.

Advice and support

Through the recently launched Adviser Finder tool, the Government is improving small business access to the $50 million a year Enterprise Connect Centres and the $42.5 million Business Enterprise Centres.

Small Business Support Line

The Government is providing $7.1 million to continue its highly successful Small Business Support Line. The Support Line has received over 27,000 calls and over 3,000 emails, with strong regional interest.