{"id":3399,"date":"2016-05-04T14:17:10","date_gmt":"2016-05-04T04:17:10","guid":{"rendered":"https:\/\/healthybusinessfinances.com.au\/?p=3399"},"modified":"2017-10-28T16:36:24","modified_gmt":"2017-10-28T05:36:24","slug":"2016-budget","status":"publish","type":"post","link":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/","title":{"rendered":"2016 Budget – whats in it for you?"},"content":{"rendered":"
\n

\"Budget\"The 2016 Budget creates hype, excitement and a mad rush of spending…..but first lets make sure the rules actually apply to you.<\/strong><\/h2>\n<\/blockquote>\n

Last night the treasurer delivered his 2016 Budget and naturally, economists, accountants, business owners and politicians are all in a tizz (me included).<\/h4>\n

But first things first, let’s break it down and take a look at the important announcements and how they may (notice I say may) relate to your business.<\/p>\n

You see here is where business owners get it wrong. \u00a0They read the big headings like “Tax Cuts for Small Businesses” and they go out to Officeworks, or JB Hi Fi or the Apple store and they buy up big thinking they are now going to have extra money in their back pocket.<\/p>\n

\n

“But what they don’t stop and think about is….are these benefits list in the 2016 Budget actually applicable to my business in the first place?”<\/strong><\/span><\/p>\n<\/blockquote>\n

So here are my key take aways from the 2016 Budget and I suggest you work out which ones are applicable to you and your business and not get swept away with the big catchy headings in the media:<\/h3>\n

1.\u00a0The company tax rate is reducing<\/strong>\u00a0– and will go from 28.5% down to 27.5% from 1 July 2016 (income capping applies). \u00a0So this is not a generic tax rate reduction for all business owners. \u00a0You may not be a company structure – so this is where reading the fine print comes in handy. \u00a0Whilst this is a tax cut, knowing how this applies to your company is imperative. \u00a0You see if you make a loss – where is the benefit? \u00a0If you company profit is very low – is there really a tax advantage? Now I haven’t looked at the other benefits of companies here and I know it is not all about the tax….but read the headings about the budget today and the main focus is on tax reductions so all I am saying is if you are not getting that benefit….then…..well….where is your benefit?<\/p>\n

2.\u00a0The company tax rate is aimed at 25% by the year 2026<\/strong>\u00a0– so this is a long term plan. \u00a0You might not be a company structure now, but if this is something you are considering in the next few years, then you need to be thinking about these company tax rates in your overall structure evaluation.<\/p>\n

3.\u00a0If you are a sole trader,<\/strong>\u00a0then the tax rates are changing for the middle income levels. \u00a0So currently the middle threshold (rate of 32.5%) goes up to $80,000 – and this is increasing to $87000. \u00a0This is only impacting approximately 500,000 individuals and the true tax reduction at the top end of that scale is only around $2000 (sorry – no time to do full calculations on every single income level).<\/p>\n

4.\u00a0Incentives to hire interns<\/strong>\u00a0and programs to reduce youth unemployment. \u00a0Business owners could be eligible to receive $1000 for hiring interns and the government will in turn pay the intern (gosh that is a mouthful) $200 per fortnight. \u00a0There are also some incentives for business owners to take on those who are not “job ready”. \u00a0Conditions of this are a tad sketchy (I mean the budget was less than 24 hours ago) especially around where the interns come from, but this could be a great way to get younger people into your business and form part of you succession planning strategy.<\/p>\n

5.\u00a0Changes to HECS repayments.<\/strong>\u00a0\u00a0Whilst this may not effect business owners themselves, it may change the payments required to be withheld for some (or none) of your employees – so it is nice to be on top of it. \u00a0There are two changes to HECS being tabled – a lower contribution by government to bachelor degrees and also lowering the thresholds where HECS will need to be repaid. \u00a0Imperative with changes to payroll like these that you use a cloud accounting system which takes all of these changes into account for you automatically. \u00a0MYOB have given the 2016 budget the thumbs up<\/a><\/span>, and their software could be what you need to streamline any payroll changes.<\/p>\n

So my thoughts are two fold – I think there are some great initiatives for business owners (note I didn’t say small business owners). \u00a0 I love the emphasis on reducing youth unemployment and I hope that this is implemented properly (aka in an easy fashion for business owners to embrace) by the government.<\/h3>\n
\n

How any of the 2016 budget changes actually effect your business, will need to be determined on a case by case basis. \u00a0Don’t get caught up in the hype.<\/strong><\/span><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The 2016 Budget creates hype, excitement and a mad rush of spending…..but first lets make sure the rules actually apply to you. Last night the treasurer delivered his 2016 Budget and naturally, economists, accountants, business owners and politicians are all in a tizz (me included). But first things first, let’s break it down and take … Continued<\/a><\/p>\n","protected":false},"author":10,"featured_media":5237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[35,141,40],"tags":[296,291,364,320,298,292,504,409,484,462,348,350,460,324,294,495,353],"jetpack_publicize_connections":[],"acf":[],"yoast_head":"\n2016 Budget - whats in it for you as a small business owner?<\/title>\n<meta name=\"description\" content=\"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2016 Budget - whats in it for you as a small business owner?\" \/>\n<meta property=\"og:description\" content=\"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/\" \/>\n<meta property=\"og:site_name\" content=\"Healthy Business Finances\" \/>\n<meta property=\"article:published_time\" content=\"2016-05-04T04:17:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-10-28T05:36:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1448\" \/>\n\t<meta property=\"og:image:height\" content=\"1312\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bizink Support\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bizink Support\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/\",\"url\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/\",\"name\":\"2016 Budget - whats in it for you as a small business owner?\",\"isPartOf\":{\"@id\":\"https:\/\/healthybusinessfinances.com.au\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg\",\"datePublished\":\"2016-05-04T04:17:10+00:00\",\"dateModified\":\"2017-10-28T05:36:24+00:00\",\"author\":{\"@id\":\"https:\/\/healthybusinessfinances.com.au\/#\/schema\/person\/29c5b2f314efd59ff2d2fdd0a491d47a\"},\"description\":\"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.\",\"breadcrumb\":{\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage\",\"url\":\"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg\",\"contentUrl\":\"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg\",\"width\":1448,\"height\":1312,\"caption\":\"2016 Budget\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/healthybusinessfinances.com.au\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"2016 Budget – whats in it for you?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/healthybusinessfinances.com.au\/#website\",\"url\":\"https:\/\/healthybusinessfinances.com.au\/\",\"name\":\"Healthy Business Finances\",\"description\":\"Financial Coaching | Cloud Accoutning Software | Bookkeeping\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/healthybusinessfinances.com.au\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/healthybusinessfinances.com.au\/#\/schema\/person\/29c5b2f314efd59ff2d2fdd0a491d47a\",\"name\":\"Bizink Support\",\"url\":\"https:\/\/healthybusinessfinances.com.au\/author\/bizink_support\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"2016 Budget - whats in it for you as a small business owner?","description":"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/","og_locale":"en_US","og_type":"article","og_title":"2016 Budget - whats in it for you as a small business owner?","og_description":"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.","og_url":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/","og_site_name":"Healthy Business Finances","article_published_time":"2016-05-04T04:17:10+00:00","article_modified_time":"2017-10-28T05:36:24+00:00","og_image":[{"width":1448,"height":1312,"url":"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg","type":"image\/jpeg"}],"author":"Bizink Support","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Bizink Support","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/","url":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/","name":"2016 Budget - whats in it for you as a small business owner?","isPartOf":{"@id":"https:\/\/healthybusinessfinances.com.au\/#website"},"primaryImageOfPage":{"@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage"},"image":{"@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage"},"thumbnailUrl":"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg","datePublished":"2016-05-04T04:17:10+00:00","dateModified":"2017-10-28T05:36:24+00:00","author":{"@id":"https:\/\/healthybusinessfinances.com.au\/#\/schema\/person\/29c5b2f314efd59ff2d2fdd0a491d47a"},"description":"The 2016 Budget creates hype, excitement and a mad rush of spending.....but first lets make sure the rules actually apply to you.","breadcrumb":{"@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/healthybusinessfinances.com.au\/2016-budget\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#primaryimage","url":"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg","contentUrl":"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg","width":1448,"height":1312,"caption":"2016 Budget"},{"@type":"BreadcrumbList","@id":"https:\/\/healthybusinessfinances.com.au\/2016-budget\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/healthybusinessfinances.com.au\/"},{"@type":"ListItem","position":2,"name":"2016 Budget – whats in it for you?"}]},{"@type":"WebSite","@id":"https:\/\/healthybusinessfinances.com.au\/#website","url":"https:\/\/healthybusinessfinances.com.au\/","name":"Healthy Business Finances","description":"Financial Coaching | Cloud Accoutning Software | Bookkeeping","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/healthybusinessfinances.com.au\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/healthybusinessfinances.com.au\/#\/schema\/person\/29c5b2f314efd59ff2d2fdd0a491d47a","name":"Bizink Support","url":"https:\/\/healthybusinessfinances.com.au\/author\/bizink_support\/"}]}},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/healthybusinessfinances.com.au\/app\/uploads\/Fotolia_124768804_Subscription_Monthly_M.jpg","_links":{"self":[{"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/posts\/3399"}],"collection":[{"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/comments?post=3399"}],"version-history":[{"count":3,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/posts\/3399\/revisions"}],"predecessor-version":[{"id":5682,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/posts\/3399\/revisions\/5682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/media\/5237"}],"wp:attachment":[{"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/media?parent=3399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/categories?post=3399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/healthybusinessfinances.com.au\/wp-json\/wp\/v2\/tags?post=3399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}