Among last night’s budget delivery was a promise to cut SME taxes to 25 per cent and increase their access to finance with a new $2 billion fund. The instant asset write-off was also increased from $25,000 to $30,000 and can be utilised every time an asset under that amount is purchased, effective immediately.
The instant asset write-off will also be expanded to businesses with a turnover of up to $50 million, covering an additional 22,000 businesses, Treasurer Josh Frydenberg noted in his speech, adding that Australian small businesses “are the engine room of the economy”.
Melbourne-headquartered McDonald Murholme has issued a response to the budget, welcoming the budget’s focus on the SME community.
The employment law firm’s managing director Alan McDonald said that many vulnerable employees will benefit from last night’s budget announcement.“A major win for employees is the government’s plans to crack down on sham contracting by promising extra funding to the Fair Work Ombudsman,” Mr McDonald said.
“The Fair Work Ombudsman provides a very valuable service in all its areas. This will give employees more rights in the workplace and better job security moving forward.”
Mr McDonald noted that the budget will help rectify a common occurrence seen in the Australian market, whereby “employers take advantage of vulnerable employees for too long”.
“Sham contracting is too frequent, it gives some employers an unfair advantage as well disadvantaging those employed by the sham contracting businesses,” he concluded.
Reference: ‘Employment law firm applauds budget’s SME focus’, Lawyers Weekly, Wednesday 3rd April 2019.