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Why you need to care about the 2015 budget


Small businesses win, but who loses out?

To be honest, I’m about as interested in reading budget news as I am in a romantic relationship with Joe Hockey, BUT the impact of last night’s budget on the Australian tourism industry, small businesses and ultimately on a consumer’s discretionary spending will impact us all.

 

SMALL BUSINESSES

If you’re a small business with an annual turnover under $2 million, aside from a 1.5 percentage point cut in company tax, you can now claim immediate tax deductions on assets less than $20,000 until 30 June 2017, rather than having to claim those purchases as deductions spread over several years. So yay if you need computers etc for your office. Now if only we can claim a holiday as an asset…

 

AUSTRALIA’S TOURISM INDUSTRY

Australian Tourism Export Council (ATEC) managing director Peter Shelley has welcomed measures such as “small business tax breaks, investment in expanding our trade agreements and Australia Week events and around $26 million to establish international border clearance services for airports in Townsville and the Sunshine Coast”.

 

However, both ATEC and the Tourism and Transport Forum (TTF) are concerned by news that visas into Australia will now cost more.

 

“Today’s traveller is highly discerning and price sensitive, and visa fee hikes present an added barrier which can work against even the best marketing effort,” Shelley said.

 

TTF boss Margy Osmond was less polite, calling the new ‘backpacker tax’ “simply ridiculous”.

 

“Australia has long been a favourite destination for young people from around the world who live, work and travel here for up to two years, and who spend on average more than $13,000 during their stay. Coupled with the tenth consecutive increase in their application fees, this new tax on working holiday makers will make them think twice about coming here.”

 

While Tourism Australia will be getting a $36.7 million budget top up, the TTF is further bemoaning the lack of increases to marketing funding in “real terms”.

 


Published: 13 May 2015


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