Penrith Bookkeeping and the 2009 Federal Budget

The 2009 Federal Budget has now been delivered. As both a small business and a bookkeeping service for small business based in Penrith, I was keen to look at the implications of the 2009 Budget. Some small business experts argue that the Budget has not really assisted small business – that during these tough economic times it has not delivered solutions to help with issues such as cash flow and staff retention.

One key benefit of the budget is the increase of the Small Business and General Business Tax Break (Investment Allowance) from 30% to 50%. This applies to eligible new capital items of $1000 or more that are installed and ready for use by 31 December 2010. To give an example of how this works, if you are a business with a turnover of less than $2 million and you purchase a car for say $30,000, you will receive a tax deduction of $15,000.  As a bookkeeper for small business in Penrith, this is the perfect time to buy computers, printers, scanners and other office equipment.

It is great that the Government has allocated $10 million over 2 years to establish a Small Business Support Line. With a bookkeeping service in Penrith focussed on small business, I see this as a positive development. Managing the books and finances of a small business can be stressful for small business owners. The advice line will be established to help small business with advice on matters such as financing, cash flow management and personal stress – which is particularly pertinent during the current Global Financial Crisis.

As a local bookkeeper based in Penrith, I am pleased that some of the infrastructure investment dollars in the 2009 Federal Budget will go to Sydney’s Western suburbs. These infrastructure projects include the $91 million Sydney West Metro design work. This 25 km rail line will link Westmead Hospital to Central Station. On the Climate Change front, the University of Western Sydney has been allocated $40 million to set-up a new world-class Centre for Climate Change and Energy Research at their Hawkesbury Campus. A new School of Medicine will also be established at Blacktown Hospital via a $17.6 million budget allocation from the Government.

Unfortunately, there is bad news to report on the concessional tax rate for superannuation. Effective from 1 July 2009, the annual cap on contributions to superannuation at a concessional tax rate will be reduced from $50,000 to $25,000. For those aged 50 and over, it will reduce from $100,000 to $50,000.

With the end of the financial year approaching you have about 6 weeks to make any adjustments to your personal and business finances based on the outcome of the Budget. You may also wish to attend one of the free Tax Basic Seminars being held by The Australian Tax Office  throughout Sydney in the lead up to 30 June 2009. You can check out location, times and dates at http://www.ato.gov.au/corporate/Seminar.asp?state=NSW&program=TB