What the 2019 Budget means to small business owners
Snapshot of the Federal Budget
Great news for small business owners with short and longer term advantages providing an environment where the government, businesses and individuals will have money in their pockets to spend on your products and services.
MAD Business Hack #1 - July 2019 to September 2019 is a good period to do marketing.
Individuals earning less than $126k will see additional amounts in their tax refunds of up to $1,080 in tax offsets. This is on top of normal refunds and includes you. Have a look at which products and services you think apply to consumers in these months and plan out some marketing to take advantage.
MAD Business Hack #2 - Use new instant asset write off of $30k to reduce your taxable income.
If you have made a prudent business decision to acquire new capital equipment then it would be advantageous to your 2019 tax return to do it in the next 3 months. It will reduce your taxable income for the year if you are a sole trader, partnership or trust. If your business is through a company you will have reduced earnings from which to distribute dividends.
MAD Business Hack #3 - Plan out your tax for 2019.
Take your year to date net profit, estimate what your net profit from the next three months and the total will be your estimated taxable income. You then have time to impact it with measure like the instant asset write off above.
MAD Business Hack #4 - get a plan together for 2020
It is a great environment to be in business so why not take advantage of it. Review your product and service offering and pricing to ensure you are competitive, find out more about your customers and align your marketing to them, review how you recruit, onboard, motivate, train and retain your employees and pull it all together in a projected profit and loss and cashlow.
The Budget: A balance of financial prudence & investment into Australia & Australians
- $7.1 Billion surplus to be delivered in 2020 ($45 Billion over the next 4 years)
- $100 Billion invested into infrastructure (Roads, ports and airports)
- $158 Billion provided in personal tax relief a) Increased tax offset b) most Australians will not be taxed above 30% by 2024
- Instant Asset Write Off increased to $30k and includes medium businesses up to $50 Million in turnover
- Multiple Superannuation changes to make it fairer for those approaching retirement
The Economy: Steady As She Goes
- Wages growth is expected to be 2.75% in 2019 - 2020
- CPI (inflation) is expected to be 2.25%
- Real GDP Growth 2.75%
- Unemployment 5% (Youth 11%)
If you really want to make a difference in 2020 then why not take advantage of our free 1 hour consultation.