In this year’s budget, the federal government has stated the goal of, “Creating the right environment at the right time for businesses to invest”. And that means right now could be the ideal time for your earthmoving business to benefit.
Several new changes have been announced which will come into effect either straight away or very soon. We took a look at how they may be beneficial to owner/operators of earthmoving equipment.
Small business tax rate cut to 28.5%
The first piece of good news is that the government has moved to reduce the company tax rate for small businesses (those with turnover less than $2 million per year) by 1.5% to 28.5%. The change will come into effect from 1 July 2015, for the 2015–2016 income year.
With this tax cut the government aims to help Australian small businesses grow. It could be an immediate way to improve the bottom line for your earthmoving small business.
Accelerated depreciation write-off
Another significant change is that small businesses can now get an immediate tax deduction for individual assets they purchase, that cost less than $20,000.
This new arrangement began on Budget night, and will continue until the end of June, 2017. The new $20,000 limit applies to each individual asset your small business purchases, and can be applied to as many assets as you wish to purchase.
If you’re thinking about purchasing excavator attachments or buckets for your small business, this new arrangement could make the purchase more affordable.
Seek financial advice to maximise your benefits
Talk to your financial adviser to find out how you can get the most out of these new budget announcements for your excavator small business.
This budget update is another helpful hint from OZ Excavator Buckets, your excavator and backhoe attachment supplier.
Please contact us on 1300 246 009 or click here to find out more about our quality excavator buckets and attachments.