Federal Treasurer Wayne Swan has delivered a budget designed to help the Government keep its promise of getting back to surplus in 2012-13.
But despite talk of savage budget cuts, Swan has unveiled a series of smaller initiatives for households and business and one major spending focus – a $3 billion skills program designed to increase workforce participation.
Here are the budget highlights for SMEs:
- A $5,000 up-front tax break for motor vehicle purchases made by companies with less than $2 million in turnover. This will cost the Government $350 million over the next four years, although this will be offset by the scrapping of the Entrepreneurs’ Tax Offset.
- A $3 billion package to increase skills and workforce participation. The centrepiece of this is a $558 million Workforce Development Fund, which will allow companies to bid for funding to train current and prospective workers.
- A reduction in fringe benefit tax breaks for company cars, which will save the Government more than $950 million.
- A relaxation of penalties for excess superannuation contributions for first-time breaches.
- A crackdown on the use of income streaming to children to avoid tax. Minors will be prevented from accessing the Low Income Tax Offset for non-work income.
- More than $150 million for the ATO to crack down on phoenix companies, tax refund fraud and grants fraud.
- A new $34 million program to help Australian suppliers get involved in the Australia’s major resources projects.
- Increased funding of $60 million for venture capital for renewable energy.
- A change to the way quarterly income tax payments are made that will reduce payments made by small businesses in 2011-12 by $700 million. The payments will be made up over 2012-13.
- Another $7.1 million in funding for the small business support phone line.
- More than $4 billion for regional investment – as promised to the independent MPs when the Government took power last year.
