The details of the 2014 Budget have been formally released, and not without controversy. We were all going to pay in some way, and some people will pay more than others. Joe Hockey and Tony Abbott told us that this budget would be tough. And, now we know how tough.
So, without getting too complex, lets have a look at what it all means for you, and for your small business:
What it means for you:
Need to see a Doctor?
As of July 1, 2015 you will be paying a $7 ‘Patient Contribution Fee, each time you visit your GP
Need a Prescription?
You’ll also pay a $5 fee for each script filled.
Drive a Car?
Well, petrol prices will also jump. BUT The government will invest the funds into roads around the country.
Have Children?
It’s a bit of a mix of the good and bad, with stricter eligibility requirements, some cuts and some new benefits.
If you’re a high income earner?
Well, if you earn over $180,000 you’ll now pay the 2% ‘debt levy’ for the next 3 years. You’ll be happy to know that every member of the Federal Parliament will pay some of the levy.
Thinking of studying?
Brace yourself for higher fees as of January 2016
Born after 1965?
Keep working… you wont be eligible for the pension until you’re 70.
You live in Western Sydney?
Good news for you! You will receive a huge share of the $11.6Billion infrastructure package. Including the Badgerys Creek Airport and improved transport connections.
But, what does this all mean for your small business? Lets take a look:
Company Tax Rates
The Government has confirmed its commitment to cutting the company tax rate by 1.5 percentage points to 28.5% from 1 July 2015.
Superannuation Contributions
The super guarantee rate is to go to 9.5% on 1 July 2014, and employers are to increase their Superannuation contributions.
Paid Parental Leave
Small business will NOT be liable for the 1.5% paid parental leave levy, only applying to companies with a larger taxable income in excess of $5M.
Support Loans for Tradesmen
From 1 July 2014, the government will support those learning a trade by providing concessional ‘Trade Support Loans’ of up to $20,000 over a four-year apprenticeship.
This should provide further incentives for Australians to undertake a trade and will also benefit your businesses as you will have a greater pool of talent to choose from when hiring an apprentice.
Incentive Bonus for hiring over the age of 50
Business that employ an Australian over the age of 50 who has been on unemployment or support pension for over 6 months will receive a payment of up to $10,000 under a new program called restart.
Accelerated Depreciation for motor vehicles
Businesses can claim an accelerated depreciation tax deduction of $5000 for new or second hand vehicles acquired during the year.
And here’s a snapshot of what this all means for our Country.
To fully understand the direct financial effect of the budget on your small business, we would recommend speaking with your accountant.
What’s next?
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.
