Have you heard about the Federal Government’s new income tax cut package? Well if you are a small business owner this should be music to your ears. From 1 July, Aussie small business owners are set to have more money left in their businesses to fuel operations and growth – all thanks to a greatly welcome tax break. We are thrilled at the opportunities this opens up for small business owners, so we have put together a quick guide to help you get fully worded up on the tax cuts, quick smart.
What is the new tax cut for small business owners?
Most Aussie small business owners have a taxable income of under $100,000: 83.7% to be exact. Where this taxable income applies, the small business owner does not pay company tax so a personal tax break can make a big difference. This is exactly what the 2018 Federal Budget gives you.
From 1 July, anyone whose income falls between $19,000 and $90,000 will get a personal tax break. So are you among the 1.3 million unincorporated small Aussie businesses set to benefit from the new legislation? Self-employed people and freelancers are also included in this tax cut eligibility. Just think, the money you save on tax can be poured directly into growing your enterprise and enhancing your products and services.
Invest your tax savings
So with a personal tax cut to help your bottom line, you have a chance to push your small business to the next level. As a small business owner, you will likely already have some good ideas about where you could allocate extra funds to best serve your specific business needs. Here are a few other ideas that may help you choose how to make your personal tax cut count for your small business:
- Purchase new necessary equipment
- Get a professional website developed and designed for your small business
- Purchase new stock
- Increase your staff pool
- Renovate or expand your business premises
Capitalise on the new personal tax cuts. When you are ready to strategically invest your tax savings, Capify is here with flexible small business loans to support you in setting your business on a strong growth trajectory.
Source: Australian Tax Office Website