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What a Coalition Government means for Small Business Posted on June 21, 2019
Tax Cuts: This is an early priority for the Coalition Government. Businesses with a revenue of under $50 million a year to 2021-2022 should expect to see a cut on tax from 27.5% to 25%.
Instant Asset Write-Off: The threshold of instant asset write-off has already been expanded from $20,000 for small business (<$10 million) to $30,000 for small and medium businesses with a turnover of <$50 million. The $30,000 threshold applies for businesses who have paid for assets first used and installed after 2 April 2019 and 30 June 2019.
$2 billion Business Securitisation Fund: This fund will provide funding to smaller banks and non-bank lenders to promote more competitive conditions in the SME lending space.
Unfair Contract Terms Law: The Coalition is considering making Unfair Contract Laws illegal; attaching civil penalties to breaches; and redefining small business for the purposes of the protections as a business that employs fewer than 100 persons at the time the contract was entered into, or had a turnover of less than $10 million.
Export Grants: Funding for the existing scheme will increase by $60 million over three years from 2019–20 in an effort to encourage Australian small businesses to launch into overseas markets. Last year more than 3,500 small and medium enterprises accessed the scheme, generating exports of $3.8 billion.
E-invoicing: Australian and New Zealand leaders have committed $1 million for an electronic invoicing board called ANZEIB to oversee the rollout of e-invoicing technology in both countries. It is thought that this simplified digital program will save businesses about “$30 billion” in transaction costs by 2029. The framework provides a common language for various e-invoicing software systems to communicate with one another. Businesses will be able to access that framework by the end of the year.
Energy Policy: The Coalition has promised to deliver power bill relief for small businesses by targeting a 25% reduction in the average National Electricity Market (NEM) wholesale spot price by the end of 2021. The commitment, if achieved, would reduce the NEM spot price from the current $88.3/MWh to less than $70/MWh.
The Government is set to announce who will oversee the Small Business portfolio very soon.
We are hosting a Post-Election Workshop next Wednesday 29 May. The 90-minute session is free to attend, and will aim to address the questions small business owners and investors have under a Coalition Government. If you would like to attend, register here. If you would like to submit a question or topic you would like us to address, please do so here.