Pip Marlow, Managing Director, Microsoft Australia
Small businesses are the beating heart of the Australian economy, so we are delighted to see the Government announce new measures that will help existing small businesses improve their cash flow – which we know is one of the biggest challenges business owners face.
The 1.5 per cent cut to the nominal company tax rate for small businesses, and the 5 per cent tax discount, up to $1,000, for unincorporated small businesses will encourage small business operators to make changes which will foster innovation – whether that be investing in new technology, changing business processes, or employing someone with the digital skills to help drive a greater connection with their customers.
We know from our report into SME culture, Culturing Success, SME Leaders enjoy higher revenue growth, efficiency, market share, staff loyalty and customer satisfaction.
They are also avid technology users which is why we also welcome the announcement that all small businesses will receive an immediate deduction on any asset costing less than $20,000 bought between Budget night and 30 June 2017.
I encourage small businesses to consider whether investing in or upgrading technology and productivity tools could drive more efficient business processes, taking pressure off that other key commodity – time.
I also welcome the announcement that small business work related portable electronic devices (smart phones, tablets, laptops) will be made Fringe Benefits Tax free in recognition that such devices are essential tools of business in the 21st century and that work and personal life is becoming increasingly intertwined.
We also know that new businesses are essential to Australia’s future so we welcome the announcements that will assist start-ups including the ability to immediately deduct professional costs associated with starting a business, removing obstacles to crowd-sourced equity funding, and the expanded tax concessions to employee share schemes.
The Government should be commended for these announcements which will support Australian small businesses, which are so important to Australia’s future.
