With $5.5 billion in small business tax cuts and concessions loaded into the 2015 budget the government is trying to get companies spending to improve Australia’s economy.
The government is also attempting to clear the way for startups and entrepreneurs to establish themselves and fuel investment within Australia.
This chart shows Australia has a larger proportion of the population launching small enterprises compared to almost any other developed country in the world. In 2013‑14, there were over 280,000 new small businesses in Australia, sitting just behind the US and in line with Canada.
It’s important to note the chart is based on number of people running businesses, not the value of the startups themselves.
Laid out in the budget, startups will be able to immediately deduct professional expenses incurred when they start a business, such as legal expenses on establishing a company, trust or partnership; rather than writing them off over five years. This will provide immediate cash flow benefits for small business.
It is also getting rid of up-front taxation on employee share schemes and will streamline the business registration process.
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