News & Views

6th May 2016

Small Business wins from 2016 Budget

06 May 2016

“Small Business is the backbone of the electrical contracting sector and engine room of our national economy. It’s great to see further wins for business within our sector,” said the CEO of the National Electrical and Communications Association, Mr Suresh Manickam, commenting on initiatives from Tuesday night’s Federal Budget.

“This Budget contains new wins for small business and our sector, on the back of last year’s relief for company tax, unincorporated entities asset purchase deductions. With a Federal Election likely to be called shortly, I am pleased that Government has listened to us in respect of increasing many of the incentive thresholds that small business can benefit from.”

Highlights of the 2016 Budget include;

  • Company Tax reduced to 27.5% for businesses with a turnover of less than $10Million
  • A further reduction to the 27.5% rate for businesses with a turnover below $25 Million and $50 Million over the next two years with all businesses to be taxed at a 25% rate by 2026-27.
  • An increase in the tax discount for unincorporated small businesses by 8% with an increased turnover threshold up to $5 Million.
  • The turnover threshold to access a range of small business tax concessions (simplified depreciation, PAYG, FBT and BAS) has been increased from $2 Million to $10 Million.
  • Capital Gains Tax concessions eligibility for small business with a turnover of less than $2 Million remains unaffected
  • Infrastructure Investment for the Melbourne to Brisbane Inland Rail Project, Western Sydney Airport, Forrestfield Airport Link and Stage 2 of the Gold Coast Light Rail
  • Youth Bonus Wage Subsidy
  • National Innovation and Science Agenda
     

“Underpinning the Turnbull election strategy is the return of the Australian Building & Construction Commission (ABCC) and Registered Organisations (RO) Act through a double dissolution, full Senate election. Whilst we note the announcements last night, members should be mindful that all announcements are subject to Senate approval and we will need to await the imminent double dissolution before receiving further clarity,” Mr Manickam said.

-ENDS-

 

Media enquiries and interviews

Barry Jackson – National Marketing and Communications

E barry.jackson@neca.asn.au

D 02 9962 6904

M 0457 767 328

 

Notes for editors

  1. NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide.
  2. NECA is run by electrical contractors, for electrical contractors.
  3. We have 5,000 contracting companies as members – and they in turn employ over 50,000 people Australia-wide.
  4. NECA employs almost 350 people across its seven chapters (Queensland, New South Wales, ACT, Victoria, Tasmania, South Australia and Western Australia).
  5. The chapters provide NECA members with a range of services including: Industrial Relations, Health & Safety, Legal, Technical, Training, business-support services, product discounts and advocacy representation in Canberra with Government, Industry bodies and Training bodies.
  6. NECA wholly-owns its Legal firm, Group Training and the NECA Colleges (in WA) and EcoSmart Electricians – and has joint ventures with a superannuation company (NSW) and one of the national cabling registrars (ACRS).
  7. NECA also employ around 2,000 apprentice electricians and provides training to a further 2,000.
  8. For further information go to www.neca.asn.au.

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