BATHURST small business owner John Fitzpatrick is confident the measures introduced in Tuesday’s Federal Budget will give his construction company a boost.
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From July 1, 2016, the Federal Government will cut the small business company tax rate from 28.5 per cent to 27.5 per cent for all companies with an annual turnover of less than $10 million.
These same businesses will also receive $20,000 in instant asset write offs, which expire in June, 2017.
Mr Fitzpatrick said he has not yet gone into the budget in detail, so it was hard to say what kind of an impact it would have on his business, however, he believes he will benefit from it.
Mr Fitzpatrick said tax deductions were always welcome.
He added that being able to claim an immediate deduction for assets of less than $20,000 purchased before June, 2017 would be excellent.
Mr Fitzpatrick said he bought a new ute last year under this initiative.
He believes the budget might also give him more scope to hire a young casual labourer.
“I think it will help some people find employment, because there will be more money around,” he said.
Mr Fitzpatrick has run John Fitzpatrick Construct-ions in Bathurst for the past 15 years.
Calare MP John Cobb yesterday said hard working local small businesses would benefit from tax relief in the 2016 budget with the small company tax rate being gradually reduced to 25 per cent.
“This will greatly ease the tax burden on small businesses in Calare and make life easier for our hard working small businesses to ensure they can grow, prosper and create new jobs,” Mr Cobb said.
“The Coalition Govern-ment is further easing the burden on small businesses by increasing access to a range of tax concessions, and expanding these concessions to businesses with an annual turnover of less than $10 million.”
