Business Tax Changes

Business Tax Changes

The Budget includes an additional $1.8 billion of tax cuts to Australian business over the next four years.

Removing 3 per cent tariff on business inputs

The Government will remove from 11 May 2005 the 3 per cent tariff applying to business inputs where no substitutable goods are manufactured in Australia.

The removal of this tariff will reduce costs for affected businesses by $1.3 billion over five years from 2004-05, and help increase the international competitiveness of Australian business.

Recognising blackhole expenditures

From 1 July 2005, business will be able to obtain tax relief for a range of ‘blackhole’ expenses (including certain pre-business costs) currently not recognised in the tax law. The changes are designed to facilitate investment by ensuring business can claim tax relief for a wider range of legitimate expenses. This measure will cost $205 million over the period 2006-07 to 2008-09.

Small Businesses

The Budget provides $29 million to continue the Small Business Assistance Programme and $9 million for the Small Business Mentoring and Succession Programme. In addition, $37 million will be provided to continue the Business Entry Point website, providing simple access to information for Australia’s small business sector and government stakeholders.