Small printers are big winners in last night’s Federal Budget with company tax breaks and asset deductions providing much-needed relief.
Businesses with turnovers of less than $2m, the vast majority of Australian printers, get a 1.5 per cent tax break down to 28.5 per cent – immediately putting money back in their pockets.
If the business is not incorporated, such as being a sole trader, it will get a further five per cent tax break up to $1000.
Small businesses can also claim up to $20,000 in tax deductions for all asset buys from today to July 2017.
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While it will not make much difference to the cost of a big new offset press, it will provide a cash boost for small printers needing to kit out the rest of their business.
It can be used for production equipment, for items needed for the business including the likes of air conditioning, computers, signs, kitchens, and for transport including cars and vans.
It is not applicable to in-house software. If the item is more than $20,000 then the tax break goes up to that amount, with the remaining costs subject to the normal tax and depreciation rules.
PIAA chief executive Bill Healey welcomed the budget measures helping out the country’s two million small businesses.
“A great many small printers will benefit from the tax cuts and accelerated asset depreciation package,” he says.
“The measures helping families will hopefully also flow through to better consumer confidence and drive more business to our industry.”
However, Healey says the budget still has to get through parliament and hopes it will fare better than last year’s which failed to pass numerous controversial measures.
“It is a very modest budget so it should be endorsed by both parties to avoid the heavy politicking of last year,” he says.
“We also need to be mindful of the need to get the budget back in surplus, which is more difficult with uncertain government revenue streams due to commodity prices.
“This budget is a boost for business but we still have a long way to go in getting the economy back on track.”
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