Federal Budget 2015 - Succession Plus

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Federal Budget 2015

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Federal Budget 2015

By , May 21, 2015
Close up pen on paperwork and woman hand calculate finance.

The Federal budget for 2015 was full of good news for SME’s – and not just because of the “$20,000 tax deduction” everyone is talking about. For small to medium business – confidence is all-important – when people  ( business owners, mums & dads and retirees )  are confident they tend to spend more in all areas of the economy – this invariably stimulates activity and improves the prospects of the SME sector. The 2015 budget did a lot to restore confidence ( badly knocked around by the doom and gloom language of the 2014 budget ) and already we have seen several economic indicators of consumer sentiment etc. shoot up as a result. The Westpac- Melbourne Institute index hit 102.4 – the first positive reading since February and the ANZ-Roy Morgan consumer confidence index was up 3.6 per cent last week following the budget, building on a gain  the previous week after the Reserve Bank cut official interest rates to a record low 2 %.

 

All of this augurs well for small business – those who invest wisely ( getting a tax deduction for a poor investment doesn’t make it any better ) in growing their business will see a return as long as confidence is maintained. Additional measures reforming the taxation of Employee Share Ownership Plans ( ESOP’s ) and encouraging new and innovative funding arrangements like crowdsourcing and peer to peer lending will further stimulate activity. The government now needs to tackle the difficult issue of taxation reform – the complexities and compliance issues with the current system are “hard work” for SME owners and most are keen to see real change !

 

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.