This is article is by Stephen Clifton providing short, sharp commentaries and education on financial matters.
No more than 195 words, less than a minute read!
Small business tax related aspects of the 2016 budget and other current tax breaks
Here’s my short 195 word comments on just a few of the personal and small business tax related aspects of the budget and other current tax breaks.
To maintain MY195 I’ve kept the comments down and not touched the many Super changes.
Personally I feel it’s not time to put our hand out for $ … Let’s focus on planning for business growth.
The 32.5% personal “marginal” tax threshold increases from $80K to $87K …
• Saves you $315 tax if you earn more than $87K.
• Really this isn’t so much a concession as long overdue inflationary bracket creep adjustment
Turnover threshold condition increase from $2M to $10M for certain small business benefits
• A welcome increase. It’s not the big end of town with $10M turnovers.
• Really, it’s still small business and in many cases with small profits.
Further tax rate reduction plan for small business companies to 27.5%
• Great plan, but remember this applies to small business companies, not the individual owner.
• The company benefits, giving it more cash for business growth.
• But if the owner wants to take the cash out (salary or dividend), then they are taxed like all individuals.
• So it’s not the “millionaire” individual that personally gets this benefit immediately.
5% tax discount increases to 8% for small business not operating through a company.
• Great, but note it’s a nice small benefit as its capped at $1K, calculated at 8% of the tax.
CA CTA FTIA
Note: This commentary is an apolitical opinion only on selected parts of the budget that is not yet legislated and should not be relied on without full consideration of your situation and other influences..
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