Small business package passes Senate

Contractors and other small businesses around Australia will be guaranteed access to the $20,000 asset write-off and 1.5% tax cut with the government’s Small Business package passing the Senate.

The package, which applies to businesses with an annual turnover of less than $2 million, was a key initiative of the Federal Budget released in May.

Small Business Minister Bruce Billson took to Twitter to announce the Senate’s approval of the Bills.

“Abbott Govt’s historic $20 k instant asset write off measure passes the @AusSenate all systems GO!” Billson tweeted.

“@AusSenate passes Abbott Gov #smallbis tax cut to lowest levels since 1967 #energiseenterprise.”

Yesterday, National Electrical and Communications Association (NECA) Chief Executive Officer Suresh Manickam commented on the development.

“NECA welcomes the Senate’s approval of this package that will provide some relief for electrical contractors,” Manickam said.

“These initiatives, including Fringe Benefits Tax relief for work-related portable electronic devices and Capital Gains Tax relief for legal restructures, are helpful [for business].”

However, he said that much more could be done to assist contractors, specifically with regards to employer wage subsidies.

“Whilst the government has tweaked the Employer Wage Subsidy to assist with the employment of Australians aged 50 and over, NECA believes that employer wage subsidies should be better targeted to assist electrical contractors to employ more mature-age apprentices,” Manickam said.

“This Jobs and Small Business package is a helpful start, but more needs to be done to assist small business to grow within our sector.”