Booksellers to benefit from small business tax breaks

Booksellers are among the beneficiaries of a new tax breaks for small businesses introduced in the 2015-16 federal budget on 12 May.

From budget night until the end of June 2017, all small businesses will get an immediate tax deduction for the purchase of individual assets under $20,000, which can be applied to as many assets as they wish.

The government said the temporary increase in the tax deduction threshold from $1000 to $20,000 ‘will support small businesses to invest in new assets’ and ‘will also mean small businesses spend less time tracking assets across years for tax purposes’.

Australian Booksellers Association CEO Joel Becker told Books+Publishing he was ‘really pleased’ with the new measure, which represents a ‘tangible outcome’ for booksellers by allowing them to claim tax deductions on regular expenditures such as fittings and stationery.

Small businesses will also benefit from a 1.5 percentage-point cut to their company tax rate to 28.5% from 1 July 2015.

The tax deductions apply to small business with annual turnover of less than $2 million.

To read more about these measures, click here and here.