Budget 2018: How Small Businesses Will Benefit

Treasurer Scott Morrison has announced this year’s federal budget, delivering some good news for small businesses, including the extension of the $20,000 instant tax write-off.

Spotcap welcomes several other important measures announced in the 2018-19 budget, including initiatives that will support the move towards open banking, and a funding boost to encourage women’s participation in science, technology, engineering and mathematics (STEM) education and careers.

 

Small Businesses

The $20,000 instant asset write-off scheme for businesses with an annual turnover of up to $10 million has been extended. The additional 12 months of the scheme will help improve cash flow for small businesses, providing a boost to small business activity and investment for another year.

The scheme allows small businesses to claim immediate deductions for asset purchases up to the value of $20,000. The assets must be ready for use by June 30, 2019.

Spotcap Australia and New Zealand Managing Director, Lachlan Heussler, said: “The extension of the the $20,000 instant asset write-off scheme is great news for small Australian businesses. It will be a relief to many Aussie businesses owners who rely on measures in the Federal Budget to boost their operations and enable future growth.

“We’d like this scheme to become a permanent feature in the tax system and the Government to build upon the policy by increasing the value above $20,000 to better reflect the costs of running a small business.

“It is important that the government maintain a longer-term perspective, recognise that small businesses are the backbone of our economy and continue to support them to further encourage innovation and progress.

“Spotcap empowers thousands of smart Australian businesses to grow and thrive by helping them gain access to finance, and this policy extension will certainly be good news for our customers.”

 

Open Banking

Spotcap has been a long-standing supporter of open banking, which promises to increase consumer choice and be a catalyst for innovation in fintech and financial services.

Lachlan said: “Open banking has undeniable benefits in terms of consumer choice and experience and we hope the government make announcements on their policy framework around this very soon. The impact from our perspective as a fintech, is that an open banking regime will allow us to service customers in a much faster, safer and more scalable way.

“The announced establishment of the National Consumer Data Right (CDR) in the budget is a positive step in giving Australians control over their personal data. CDR will encourage competition and help consumers save money through improved price comparison and switching services.”

Women in Fintech

In the Federal Budget the government also announced a $4.5 million boost for women’s participation in STEM education and careers.

Spotcap is a firm supporter of advancing women’s careers in STEM and fintech industries and this measure is a much-needed boost to encourage diversity across the sector.

“The government have proven their commitment to increasing young people’s interest in STEM. Women occupy only one quarter of the Australian STEM workforce, and education is a fundamental first step to equip young women with the tools, knowledge and opportunity they need to thrive in STEM careers. We also need to continue encouraging female role models in the Australian STEM space, to inspire and excite a new generation,” said Lachlan.

Spotcap launched a campaign to tackle diversity in STEM and fintech on International Women’s Day 2018. To hear more of the work Spotcap is doing to inspire and support more women in STEM careers, make sure you visit our IWD campaign site.