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Federal Budget Cheered by Small Business Owners

small businesses to growAn article for the website Your Investment Property says that the second budget presented by the Abbott Government will help property investors. Tax breaks will let business owners take their businesses to a different level. At the same time, it will also create a large number of jobs. Initiatives like “Jobs for families” will mean that families will not reel under the pressure of low household budgets and will be able to manage mortgage repayments a lot better. As an aside, the taxation allowance for negative gearing stays and this is another piece of welcome news.

Application fee introduced for foreign investors

Foreign investors and expats looking to invest in the Aussie property market will be charged an application fee based on a sliding scale (a variable scale determined by demand) beginning at $5,000. Mortgage brokers are a little panicky with the development but experts are convinced that tougher entry protocols won’t be dampening the enthusiasm of the foreign investors.

Small Business package

The “Jobs and small business package” talked about by Treasurer Joe Hockey is to the tune of $5.5 billion. This is unprecedented in Australian history. Come July 2015, small companies with profits of less than $2 million annually will have their tax bracket lowered from 30% to 28.5%. Furthermore, small businesses will be able to avail of an immediate deduction of new assets up to $20,000.

The budget clearly shows its intent towards small businesses and is likely to herald higher growth rate for them.

You can read the original article here.

Joe Hockey criticised

Lately, Joe Hockey was in the news for all the wrong reasons when he was severely criticized for commenting without having made adequate research on negative gearing and how abolishing it had affected rental rates in 1987. His view on using SMSF money for first home purchases was also not taken too well. This said, the treasurer definitely needs a pat on the back for his growth-friendly move dedicated to small business houses.

“Small business, too big to ignore” campaign

Perhaps, the noise made by the campaign “Small Business. Too big to ignore” has been heard and the government has woken up to the fact that businesses, and not governments, generate capital and wealth for nations.

A round of welcome moves

I also quite like the move aimed at minimizing red tape hurdles, expediting registration processes and facilitating crowd-sourced equity funding. Certainly a round of turbocharged small industries are needed!