12 August 2015
FEDERAL Member for New England, Barnaby Joyce said the Government’s Growing Jobs and Small Business package is proving to be one of the biggest economic recognitions of the sector in Australia’s history, with the introduction this week of the first tranche of legislation to deliver that package.
He welcomed the announcement that the Tax Laws Amendment (Small Business Measures No.1) Bill 2015 will reduce the corporate tax rates from 30 per cent to 28.5 per cent for small businesses with annual turnover under $2 million.
He said it is estimated that up to 780,000 companies including many in the New England Electorate would benefit from this measure, while small business companies will pay less tax for income years that commence on or after 1 July 2015.
“Farmers and small business owners have been quick to recognise the potential these changes offer to their enterprises and the flow on effect through the economies of Glen Innes, Tenterfield, Inverell, Armidale, Guyra, Walcha, Tamworth, Quirindi and Gunnedah has been significant,” he said.
Mr Joyce said the Tax Laws Amendment (Small Business Measures No. 2) Bill 2015 will provide accelerated depreciation arrangements to small businesses and primary producers. This change is the centrepiece of the Budget’s small business package.
He said the Bill will amend the small business simplified depreciation rules in the tax law, to increase the threshold for immediate deductibility from $1,000 to $20,000.
“This is a significant increase in the threshold and a massive gain to cash flow for small business.”
“Our budget measures reflect our understanding of the complex nature of small businesses across our country. Small Businesses are at the very heart of rural and regional Australia and with this is mind the Bill will also amend the tax law to provide simplified accelerated depreciation rules for all farmers.
“Farmers are able to immediately deduct all eligible capital expenditure on fencing and water facilities. Fodder storage assets will be deductible over three years.
“We are simplifying the tax system for farmers, and encouraging investment that will improve our farming community’s resilience to drought and other extreme weather events,” he said.
“It builds on the successful passage of the first two bills through the Senate last week, confirming all small businesses access to an immediate tax deduction for assets costing less than $20,000 and the 1.5 per cent tax cut for small companies with a turnover of less than $2 million.”
Mr Joyce said the accelerated depreciation arrangements for farmers and small business can be claimed for expenditure since Budget night.