SMEs will be disappointed that the Federal Budget has not provided assistance for small business despite a number of measures being foreshadowed in the recent Henry Review, according to Deloitte Tax Partner, David Pring.
The Henry Review recommended further small business concessions. These included:
The small business entity turnover threshold should be increased from $2 million to $5 million and consideration should be given to adjusting the $6 million net asset value test under the small business CGT concessions (recommendation 30)
Companies should be allowed to carry back revenue losses to offset against prior year’s taxable income, with the amount of the tax refund limited to the company’s franking account balance (recommendation 31)
The rules around the taxation of trusts should be updated and rewritten to reduce complexity (recommendation 36)
A flow through tax entity regime for closely held companies should be considered in the future (recommendation 38).
“Small business had hoped that these Henry recommendations might have been announced as part of the Budget to support Australian SMEs,” Mr Pring said.
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