Small businesses will, without a doubt, be impacted by the new Australian budget. Currently, the budget is nor set in stone– and nor are its effects on small entrepreneurs. But there are several likely outcomes. Many experts welcome this move, stating that it will, generally, increase capital and allow businesses to expand. However, it may increase difficulties in hiring foreign workers, which is a subject of debate among the business community. Although business executives are not yet in agreement, small business owners should be cautiously optimistic for their economic futures.
Key Takeaways:
- New Australian legislation will allow small businesses to deduct purchases of assets eligible, when they’re less than than twenty thousand.
- The news is great for small businesses, poised to finally turn a profit, especially tech businesses, which typically run at a loss for the first two years.
- The new, legal definition of a business, in Australia, now covers those with an aggregated turnover of less than ten million.
“Cash is required to pay employees, purchase raw materials, equipment or goods, amongst others,” Rabie says. Without a healthy cash flow cycle, business growth can be severely restricted, and indeed otherwise successful enterprises can go under.”
Read more: https://insidesmallbusiness.com.au/planning-management/what-the-budget-means-for-small-business
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