Po wering Business Potential

When Queensland small businesses can think big

The Chamber of Commerce and Industry Queensland (CCIQ) described the 2015 Federal Budget as the most small business friendly budget in more than two decades. The one measure that stood out above all others, designed by Treasurer Joe Hockey to give small to medium sized businesses an immediate lift, was the writeoff mechanism for all assets up to $20,000.

This has enabled small businesses to buy that much-needed work vehicle, computer, tools and other equipment. And the bonus was that it didn’t have to be done before the end of this financial year, with the government running it through until June 30, 2017. CCIQ partners, accountancy network BDO Sunshine Coast said it represented a significant increase from the previous write-off threshold of $1000. Hundreds of businesses on the coast will qualify. BDO advises that if a small business entity is registered for GST, the GST exclusive amount is taken to be the cost of the asset for the purposes of the $20,000 threshold. Accelerated depreciation will apply to the majority of capital asset types including cars, machinery and equipment. Both new and second hand assets are eligible. A small number of assets will not be eligible for the immediate write off, including horticultural plants and capital works as these types of assets generally have their own specific depreciation rules. A small business, for the purpose of these measures, is an entity (sole trader, partnership, trust or company) operating a business with turnover less than $2million (when aggregated with turnover of associated entities). Assets costing $20,000 or more will not be immediately deductible. However they may be placed in the small business depreciation pool and depreciated at 15 per cent in the first year and 30 per cent in subsequent years. The balance of the pool can be immediately deducted if it falls below $20,000 over the period (including existing pools).

Kimberley Lynch is the Regional Manager for the Sunshine Coast & Wide Bay Area for CCIQ, the peak industry body for businesses in Queensland. We exist to provide a powerful voice for small business and to power our members’ potential through providing access to essential tools, services, information and advice. Not a member? Join now. ca klynch@cciq.com.au // www.cciq.com.au

Only 28 per cent of working Australians aged 50 to 80 believed they would have enough savings to retire.