The tax cuts presented in the 2015/16 Federal Budget on May 12, 2015, are an exciting opportunity for small businesses looking to expand their operations. What could these changes mean for your business phone plans?
What are the changes in the budget?
The most significant change is the introduction of accelerated depreciation. This allows any company with an annual turnover of less than $2 million to get an instant tax reduction on all new assets under the value of $20,000 until the end of June 2017. There are no restrictions on the number of individual assets you can deduct - as long as each is under the prescribed threshold, you can write them off to your heart's content. This is a massive improvement from the previous cap of $1,000.
What do these tax reductions mean for me?
Essentially, by instantly writing off these new assets, you'll be freeing up more money and increasing cash flow, allowing your company to invest in solutions that help your business grow. What's more, you won't have to keep track of your assets' depreciation over the years, meaning less book-keeping and more time focussing on your business.
What should I buy?
Treasurer Joe Hockey answered this exact question during his budget night speech:
"If you run a cafe, it might be new kitchen equipment, or new tables and chairs. If you're a tradie, it might be new tools or a computer for the home office. Cars and vans, kitchens or machinery ... anything under $20,000 is immediately 100 per cent tax deductible from tonight."
However, the possibilities don't end at physical equipment. You can also use the new tax cuts to help you upgrade internal company tools and applications you use on a daily basis, for example your business phone system. Software like unified communications helps you mange both internal and external communication while also enabling employees to easily work remotely. It's a worthy investment that can increase productivity and streamline processes.
So, if you have been putting it off due to financial restrictions, the changes in the budget are the perfect opportunity to start researching the right solution for your business. How will you use these new reductions to grow and improve your business?