Federal Budget 2015
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 !