The Small Business View - 2007 Federal Budget

Discussions : Starting your own Party Plan : The Small Business View - 2007 Federal Budget

JodieR wrote:

A snippet from a newsletter I get from my accountant:

The Federal Budget did not deliver any fundamental reform to tax or complaince costs for small business but there was some easing of red-tape burdens and additional funding for some grant programs.

Small business taxes will be cut by $540m over the next four years - although the bulk of initiatives do not focus on small to medium enterprises which struggle the most with red tape. From 1 July, micro-businesses with a turnover of $75k or less will be exempt from GST - a lift from the previous threshold of $50k. Small businesses with turnover less than $75k may still elect to register voluntarily.

More small businesses will enjoy access to simplified methods for calculating GST - an arrangement already available to small restaurants and food retailers. For purchases of $75 or less, a tax invoice will no longer be needed to claim a GST credit. From July 1, 2008, taxpayers who choose to report and pay GST annually may also make their pay-as-you-go installments annually - which means they will only need to lodge a business activity statement once a year.

Source - Business Review Weekly magazine May 2007.