Budget to smooth the way for small business start-ups

Share Canberra's trusted news:

michelle grattan

Michelle Grattan, University of Canberra

REGISTRATION of small businesses will be streamlined as part of the government’s package for the sector, which will be a centrepiece of Tuesday’s budget.

Announcing measures to cut red tape, Treasurer Joe Hockey and Small Business Minister Bruce Billson said a single online registration site would be established. It would replace the present “fragmented and complex process” and save businesses time and money.

From July next year new businesses would be able to immediately deduct professional costs associated with starting up, rather than writing them off over five years.

“Many people need the advice of lawyers and accountants when they start a business,” the ministers said. “This can be expensive and drag on cash flow. Allowing these costs to be deducted immediately will allow more money to be invested in growing the new business.”

Small business owners will also be able to change the legal structure of their business without incurring a liability for capital gains tax. This would reduce some of the complexity of starting a new business and provide owners with greater flexibility to determine how they grew, the ministers said.

The government was making it easier for small businesses to access capital by removing obstacles to crowd-sourced equity funding, they said. It will also consult in coming months on the current framework covering the establishment and regulation of corporations, to investigate whether some of these can be eased to cut compliance costs.

The budget will contain an already-announced cut in company tax of 1.5% for small business and a new accelerated depreciation allowance is expected.

Interviewed on Sky, Billson rejected suggestions that the gap between the company tax rates for big and small businesses would cause problems.

The Conversation

Michelle Grattan is Professorial Fellow at University of Canberra.

This article was originally published on The Conversation.
Read the original article.

Who Can You Trust?

In a world beleaguered by spin and confused messages, there's never been more need for diverse, trustworthy, independent journalism in Canberra.

Who can you trust? Well, for more than 25 years, "CityNews" has proudly been an independent, free, family-owned news magazine, serving the national capital with quality, integrity and authority. Through our weekly magazine and daily through our digital platforms, we constantly and reliably deliver high-quality and diverse opinion, news, arts, socials and lifestyle columns.

If you trust our work online and believe in the power of independent voices, I encourage you to make a small contribution.

Every dollar of support will be invested back into our journalism so we can continue to provide a valuably different view of what's happening around you and keep citynews.com.au free.

Click here to make your donation and you will be supporting the future of journalism and media diversity in the ACT.

Thank you,

Ian Meikle, editor

Previous articleEurovision Party at the National Film and Sound Archive!
Next articleConfronting theatre in festival of ‘cultural interplay’

Leave a Reply