2015 Budget: Be smart about your spend, invest in digital
We'll this year’s budget is an interesting one, and I’m firmly of the opinion one must make hay while the sun shines - and if that means capitalising on short term tax cuts, I’m on board.
These incentives are being put in place to stimulate the economy through motivating small businesses to go out and spend. So with this wave, where is your business positioned? Whether your a big or small business you should ask yourself:
Is your app or website competitive?
Does your app or site even exist in these times of rapid business spend?
For the small business owners, in case you’ve missed the cuts and incentives, the key ones to be mindful of are:
- Accelerated Depreciated: Any asset purchased by the business under 20k is now 100% tax deductible in year of purchase.
- 1.5% cut to the Company Tax rate: was 30% now looking to be 28.5%
- Your business cannot be turning over more than $2M for the above to apply.
They both really go hand in hand - by more stuff, claim 100% of the purchase as a tax deduction which then reduces your taxable turnover (profit), which is now taxed at 1.5% less than it was.
So with all this in mind and tax time approaching, if your business needs a new asset under 20k, consider a digital asset - it might just be an investment that looks beyond these incentives and ultimately future proofs your business.