Kate Carnell, the Ombudsman for small businesses in Australia, says that Federal Budget will include measures to help more than 3 million Australian SMEs giving businesses more confidence to devote time and resources in the long-term developments of their enterprise, which in turn increases the demand for communications solutions and IP phones.
Carnell said that the capability to confidently strategize for your enterprise’s future is crucial to success. The allocations in the Federal Budget will give businesses good grounding and framework to plan their future and confidently make financial decisions to grow their company in terms of staff, money, time, and equipment. As businesses flourish, the need for IP phones and other communication solutions for better collaboration and client communication also grow.
Small business tax rate will be lowered to 27.5% which increases the threshold for eligibility to 10 million dollars. More than tens of thousands of small businesses will be in a more advantageous position to support and grow employment. The budget will let more than eight hundred thousand of small businesses to get two tax cuts for many years. A further sixty thousand will benefit from an instant tax cut of 2.5%.
Savings in tax cuts do not get to be put away in mum and dad businesses back pockets. Instead, SMEs reinvest the amount into the businesses to hire more people and purchase more equipment to improve their enterprise. More employees mean having to find efficient and cost effective ways to collaborate and communicate and this is where IP phones come into play. Miss Carnell also added that small businesses generate new jobs and positions, especially for the burgeoning generation.
The budget measure of raising the threshold for eligibility to get an additional 8% tax reduction for unincorporated enterprises helps encourage more citizens to establish their own companies. Miss Carnell add3ed that it has to do with getting the balance right between risks and rewards; about giving entrepreneurs more incentive to create opportunities not only for themselves but also for the greater community. The tax measures in the 2016 budget will have considerable effect in achieving this as there are more than 2 million SMEs that are qualified to get the unincorporated tax reduction. More than two million businesses will have more funds to spend on communication upgrades and purchase equipment like IP phones.
Increasing the threshold giving way to readily available asset write-off for SMEs will guarantee that an additional hundred thousand entrepreneurs can confidently invest in procuring assets for upgrades beginning July 1, 2016. More Australian businesses will be more equipped to innovate and establish growth for many years to come.
SMEs quickly capitalised on this tax measure when it was made known at the announcement of the 2015 federal budget. More than one hundred seventy thousand SMEs made claims since July 2015. The total value of almost $800 million has stimulated the SME sector and increased growth which affected and improved the Australian economy.
Miss Carnell mentioned that these budget measures intends also to achieve streamlining of red tape issues that will give small business owners more time to focus on the core businesses and how to improve internal and external communications. As she travels around Australia and listen to business owners, she gets to know what entrepreneur’s burdens are. The most common complaints involve red tape issues. Small businesses should be spending time growing their business instead of doing paperwork for the government. By making the BAS reporting documentation requirements more simple and exploring online “e-Invoicing” methods, the government is aiding SMEs to be better efficient in their daily company operations. SMEs can spend more time in using their IP phone upgrades to collaborate with staff and provide clients a better experience in dealing with their company.
The $6 million fund that was set aside for ASBFEO in the federal budget highlights the significance that the government recognises SME sector’s role in the Australian economy and its ability to foster innovation and growth well into the future. The funding recognises the pivotal role that the office in creating a very positive Australian SME landscape. The ASBFEO funding will mean being able to fully engage with small businesses to conduct a comprehensive and thorough consultation process to deal with SME concerns and ideas that can be translated into consequential policy changes.
Running and managing a small business is a risk but with the correct settings and government policies in place, it converts into being a calculated risk, which more and more citizens will be more than willing to take if the government can help them plan for their future with confidence. The 2016 budget definitely provides this encouragement and opportunity for SMEs to thrive and prosper.