Federal Budget 2017: How do SMEs benefit?
This year’s federal budget announcement alluded to many positive implications for SMEs, with the federal government mostly continuing to support small businesses in their respective ventures.
There were many implications for SMEs and how they will be operating in the future. The key elements of those initiatives include:
- Employment: annual temporary work visa levy of $1,200 or $1,800 per worker a year and one-off permanent skilled visa levy of $3,000 or $5,000
- Taxation: businesses with a turnover of up to $50m will receive a company tax cut
- Benefits: small business will have the $20k instant asset write-off extended for a second year.
Another relevant consideration in this year’s budget is big data and its relevance for Australian SMEs. Ahead of the budget announcement, a Productivity Commission and Inquiry Report was released into open data availability and its use. The report investigates the benefits and cost options for improving access and use of this data, plus making the data available to the individual to use, empowering them with the resources to make more informed financial decisions.
Spotcap Australia and New Zealand Managing Director, Lachlan Heussler, has welcomed the sharing of big data and an open data regime and says that it will encourage competition and we’ll likely see small and medium-sized businesses grow as a result.
All in all, in our view this federal budget proves to be sensible, and focuses on the main issues in the Australian economy. Through the various measures designed to boost and empower SMEs, we look forward to the expected increase in small business growth, allowing firms like Spotcap to better service the needs of this fundamentally important sector of the Australian economy.
The SME landscape is ever-changing, and will see even more changes set upon it in the years to come as an increasing focus on tech, innovation and skills is set to drive the Australian economy. We welcome the latest changes to help Aussie small businesses, and also look forward in anticipation to see the continued growth of Australian fintech.
Until next time,
The Spotcap team