Last week, the heavily anticipated 2018 Federal Budget was released.
Treasurer Scott Morrison stated that, with the aim of strengthening the Australian economy, the government would “back business to invest and create more jobs, especially small- and medium- sized businesses”. While this quote seems like a win for small business owners, there were additional ‘wins’ outlined in this year’s Federal Budget.
OnDeck’s CEO, Cameron Poolman outlined the effect of these changes on small businesses across Australia.
“Small business is fundamental to our economy and is the primary source of Australia’s innovators and entrepreneurs. The 2018 Federal Budget held some good incentives for small business, with the most notable improvements relating to tax planning, an extension to the $20,000 tax write-off, more funding to upskill workers and simplified BAS processes. These are all positive inducements for small business, however, OnDeck would like to see the Budget focus more directly on the core structural issues impeding the sector’s growth. Most importantly, access to lower cost funding. The Government’s open banking agenda and in particular the emergence of the ‘alternative’ finance sector will be critical to resolving this issue for small business in the coming year.
Ultimately, our aim as an industry is to move from ‘alternative’ and be considered by customers, Government and regulators as ‘the’ main source of finance to the retail consumer market. We will work with industry peers over the coming year to progress the Government’s open banking regime and to develop strong viable financial solutions for the benefit of small business in Australia.”
Here are some of those Budget benefits for small business owners:
The above information is general in nature and does not amount to financial or tax advice.
Information has been sourced from the following websites:
*According to Lifehacker, the government has said the changes to Business Activity Statements will save small businesses $590 on average, per year. https://www.lifehacker.com.au/2018/05/whats-in-the-2018-budget-for-small-businesses/