On the evening of May 9, the 2017-18 Budget was released by Treasurer Scott Morrison, and it's safe to say that not everybody is happy about it. However, it does deal with a number of important issues, including the fact that many small business owners have struggled over the past year.
"Small business owners have gone without to keep their businesses open," said Mr Morrison in his official Budget speech.
"Small business owners are out there fighting for growth in their businesses every day. They deserve our respect and support."
"Small business owners are out there fighting for growth in their businesses every day. They deserve our respect and support."
The Budget forecasts a $29.4 billion deficit by the end of the financial year, which is a considerable increase over the 2016-17 Budget, which forecast just a $26.1 billion deficit. While the Budget aims to improve the working lives of small-business owners with financial measures, it's still going to cost the government an enormous amount of money.
Small businesses, or those with turnover of less than $10 million, will benefit from being able to write off up to $20,000 in assets for another year (until June 2018). However, for businesses that have not yet accumulated enough assets to reach that limit, you can only make the most of it if you invest. To invest, you'll need working capital, and that's where Earlypay can help.
How does the 2017 Budget help small businesses?
Along with the $20,000 tax write-off extension, this year's Budget provides more funding to small businesses and research centres in a bid to increase the science and technology development in the country. The government clearly appreciates the direction the business world is heading.
The extra measures include:
- $100 million for manufacturing and advanced scientific research.
- A new national skills fund to support the training of apprentices.
- $300 million for state and territory governments to reduce red tape.
Manufacturing businesses that are poised to take the next step in terms of research and development will benefit greatly from the government funding, but that shouldn't be the only place you turn for help with your finances. Debtor finance could be a great option for your business if you're always waiting for clients to pay their invoices.
Manufacturing businesses might benefit from research and development funds from the government.
What will the Budget do for the economy?
One of the main concerns surrounding this Budget was what measures the Treasurer would implement to tackle the major problems facing Australians right now. One of these is housing affordability, another is the abuse of the Medicare system. While Mr Morrison appreciates these are big issues, he hasn't necessarily provided any silver bullets to solve the problems. Rather, this Budget is designed to help as many facets of the Australian economy as possible.
None of the measures in place for small businesses will directly impact cashflow.
"Above all this is an honest Budget. It is honest about our challenges and opportunities. It does not pretend to do things with money we do not have. It does not indulge simplistic solutions to what we know are complex problems," said Mr Morrison in his official Budget speech.
None of the measures in place for small businesses will directly impact cashflow. They will only allow for less reduction in turnover because of investment in vital assets because of the extension to the tax write-off. Your business might not see any benefits from the Budget at all, but that doesn't mean there isn't help available.
Constantly waiting for your clients to pay you for work you've done or goods you've provided? You can use your unpaid invoices to get debtor finance, which means up to 80 per cent of the money you're owed can be paid into your account with 24 hours. That could be significantly faster than if you waited for your clients to pay, and means you can keep up with your own bill payments, or make other investments without restriction.
For more information about how the 2017 Budget will impact small-business owners, or to learn about debtor finance, get in touch with our team today.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].