Small businesses set to benefit from a number of budget measures
Community pharmacies and other small businesses have been given tax cuts and a range of other financial assistance measures in the 2019 Federal Budget.
The Pharmacy Guild of Australia said it “welcomes the taxation measures to assist small business which have been announced in the Budget”.
These include the tax rates for small businesses slashed to 25% by 2021/22, and the upper limit for the instant asset write-off for one-off purchases increased from $25,000 to $30,000.
The company tax rate for small and medium-sized companies with an annual turnover of less than $50 million will be lowered initially to 27.5%. This rate will be lowered further to 25% by 2021-22.
Other measures include:
- Increasing the instant asset write-off threshold to $30,000 and expanding access to medium-sized businesses with an annual turnover of less than $50 million (up from $10 million) to help them reinvest in their business, employ more workers and grow.
- Increases to the unincorporated small business tax discount rate (up from 8% to 16% by 2021-22, with a cap of $1,000).
The lift in the instant asset write-off threshold to $30,000 is immediate and will be in place until 30 June 2020, benefiting an estimated 3.4 million businesses, the government said.
The threshold applies on a per asset basis so eligible businesses can instantly write-off multiple assets.
George Tambassis, Guild national president, said community pharmacies were vital small businesses because of their role in the health system, their accessibility for patients, and because they are significant local employers.
“We welcome this recognition of the need for small businesses to be able to invest in the future for the benefit of the patients they serve and the staff they employ,” he said.