Budget to have positive impact on business

In a recent survey conducted by ifa, readers were asked whether they thought the Budget would be beneficial for their businesses. 

Of the 77 survey respondents, 71 per cent said the Budget will have a positive impact, while 29 per said it will not.

Commenting on the results of the survey, FPA chief executive Mark Rantall said the Budget measures will have a positive influence on advisers wanting to invest in their business.

“A lot of financial planners are running small businesses – anything that can encourage them to invest in that small business and provide some tax relief is a positive outcome,” Mr Rantall said.

“Small business is the backbone of Australia and anything that can help encourage them to invest back into their business is a positive thing and will also have a positive impact on growth.

“We have clearly got a budget deficit issue in Australia and it would be interesting to see how this goes in terms of the tax revenue forgone versus the growth stimulus that it provides,” he said.

One Budget measure proposed to allow small businesses a 100 per cent write-off for the purchase of all assets costing less than $20,000 in total.

Another measure was a tax cut of 1.5 per cent for all small businesses that earn less than $2 million.

However, commenting on the Budget on its release last month, small business financial adviser and Boutique Financial Planners president Dacian Moses told ifa the $2 million is “arbitrary” and questioned its effectiveness.