CROWDFUNDING BOOST FOR START-UPS TO GET IN THE FEDERAL BUDGET

Long-suffering start-ups trying to make it in the mighty Australian market are set to get a touch of relief as part of the new 2015-16 Federal Budget.
New tax incentives for startups have been announced by Treasurer Joe Hockey, specifically around crowdfunding.
$7.8 million will be spent getting ASIC to work up and implement a new regulatory framework for crowdfunding money raised by startups and how they might access it once it has been raised. The new framework will address the requirements for reporting and disclosing the use of crowdfunds by startups.
The framework aims to support small business investment, enabling these companies to hire and grow through the Jobs and Small Businesses initiative. Start-ups can also now deduct professional expenses as soon as they start their business.
In addition, the Government has indicated reducing the tax rate for the more than 90 per cent of incorporated businesses with annual turnover less than $2 million. The company tax rate for these businesses would be reduced by 1.5 percentage points to 28.5 per cent.
To help all Australian small businesses grow, the Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015. This delivers a tax cut of $1.8 billion over the next four years.
Small Business Tax Relief Example:
"Kathleen owns a small tutoring service that she runs as a sole trader. Kathleen's taxable income in 2015-16 is $62,910. Kathleen will receive a tax cut of $595. In addition, any assets that are purchased for a price below $20,000 will be eligible for immediate deductibility.r will be able to immediately deduct the full $5,661 cost of the interactive whiteboard leaving her an extra $1,735 better off in the first year. In addition, any other assets that are purchased for a price below $20,000 will be eligible for immediate deductibility. Altogether, Jennifer will pay $2,250 less tax in 2015-16."

The Australian Government is making good progress to support crowdfunding, and wants start-ups to be able to use it without running into too many roadblocks.


More here:
http://www.budget.gov.au/2015-16/content/highlights/jobsandsmallbusiness.html
http://www.business.gov.au/small-business/Pages/jobs-and-small-business-package.aspx
http://www.budget.gov.au/2015-16/content/glossy/sml_bus/html/sml_bus-04.htm


TAGS:
australia, Business, businesses, cfia, crowd funding, crowd funding institute, crowdfunding, federal budget, framework, government, malcolm turnbull, small businesses, startup, startups, tax