If you have been thinking about starting a new business, now might be a great time with the introduction of a number of significant small business incentives set out in the Federal Budget for 2015/16 announced on 12 May 2015.
The tax incentives for new business start ups include:
- Small business tax rate cuts (the 2015/2016 tax rate for companies with an aggregated annual turnover of less than $2 million will be reduced by 1.5% to 28.5% and the tax rate for individuals with business income from unincorporated businesses will be reduced by 5%);
- Small business accelerated depreciation for all assets costing less than $20,000 and purchased and installed between 12 May 2015 and 30 June 2017 allowing an immediate business expense deduction for all small businesses with an annual turnover of less than $2 million; and
- Immediate deduction for business establishment costs including legal and accounting expenses associated with the establishment of a new business and incurred in setting up a company, trust or partnership structures.
So if everything else is looking right this might be the perfect opportunity to start up your new small business.
To make sure your business start up doesn’t become one of the statistics that fail in the first 12 months there are a number of things you can do. The most important is to get the best legal and accounting advice from an experienced adviser who can give you excellent and practical advice for the type of business you are looking to kick off.
If you haven’t already done so, you should definitely be looking for advice in relation to:
- Business ownership structures such as companies, trusts, partnerships and joint ventures;
- Business asset purchase and conveyancing;
- Financing your business start up;
- Your business terms of trade;
- Franchise, licensing and distribution agreements;
- Contractual arrangements with suppliers
- Commercial property leases;
- Credit control and debt collection considerations; and
- Employment issues;
There are of course a multitude of other considerations in starting up and running a small business and we can help with all of these.
Mark Lumley and myself have many years of experience in advising the owners of small to medium businesses. Call us to discuss how we can help with your new small business venture.