Simpler Business Activity Statements (BAS), an extension to the instant asset write-off programme and the opportunity to opt in to the single-touch payroll underscore simple and positive changes for small business from 1 July, Small Business Minister Michael McCormack says.
“The start of a new financial year means paperwork will be simpler for small business and the popular instant asset write-off programme will continue for another year,” Minister McCormack said.
“I remember how onerous paperwork can be after running my own small business, so I am pleased the BAS will now only have three reporting requirements from tomorrow, rather than seven.
“Reporting wages, Pay-As-You-Go (PAYG) accounts withholding and superannuation information to the Australian Taxation Office can also be very time-consuming for small business, so I know many small business owners will take advantage of opting into the single-touch payroll from tomorrow.”
McCormack said the popular $20,000 instant asset write-off programme will run for another year thanks to an extension in the recent Federal Budget.
“Around the country, I heard from small business how helpful the instant asset write-off is to purchase the new equipment they need to grow, and how it creates what small business calls a ‘chain reaction’ for staff and customers,” Mr McCormack said.
“I listened to that feedback and the Government extended the programme in the 2017-18 Budget. As a result, small businesses with a turnover up to $10 million can continue to purchase the equipment they need to grow up to $20,000 and write it off immediately.
“Our small business tax cuts – which were back-dated to 1 July 2016 so small business reaped the reward immediately – also made more small businesses eligible for the programme.
“We know turnover above $2 million doesn’t mean you’re a big business, so we have changed the definition to up to $10 million to help even more genuine small businesses grow.”
1 July 2017 also sees a tax cut for the large-employing medium-sized businesses with an annual turnover up to $25 million.
“Small businesses employ almost one in every two Australians in the workforce. Our changes back them to create even more jobs and keep our economy growing.”