The Federal Government’s final budget before the next election is being broadly welcomed by business, as it seeks to clean up tax avoidance and cut taxes.
Of special interest to the printing industry will be the news that the ATO is receiving $319m to intensify its investigations in phoenix businesses, and the black economy.
Phoenix operations – where a business closes one day and opens the next in the same premises with the same owners, same kit and the same phone numbers – are a bane of the industry, as they effectively pass their debts onto everyone else.
As well as additional phoenix enforcement, the Government said it is planning to introduce new phoenixing offences in law. These will expand the personal liability of directors for a collapsed company's debts, and will limit the available avenues for directors to try and escape liability.
Also in the budget the Government said there will be a streamlining of GST reporting which will impact almost three million small businesses, and is expected to save them an average of $590 each per year.
The $20,000 instant write off scheme for small business has been extended for another 12 months, the scheme enabling business to put the whole amount in the current year’s figures.
Businesses may also benefit to the tune of $10,000 in wage subsidies if they take on certain older workers, over 50 years old.
The R+D Tax Incentive scheme is being tightened up, but mainly for businesses with a turnover of more than $20m to ensure that they don’t pass ordinary business expenses through an R+D ledger.
Tax reform which will instantly deliver rebates to most workers and which will eventually see a flat rate of 32.5 per cent for everyone earning between $40,000-$200,000 is being seen as beneficial to the economy, putting more money in people’s pockets, which should boost company marketing efforts and so print spend.
Andrew Macaulay, CEO at Printing Industries says, “Overall Printing Industries is pleased that the Government has listened and delivered for small business.”
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