Whether you are starting or expanding your existing business, you need to make sure that you take the best possible steps to ensure your success. You need to know how to set up a small-medium enterprise in Australia and make the most of tax breaks and government grants. You also need to know the roadblocks that can stop your business from growing.
Tax breaks
Having a small-medium enterprise is an essential component of the Australian economy. The government is doing its part by providing small-medium enterprise tax breaks to boost the economy and create jobs. While tax breaks for small-medium enterprises can vary by business type, there are a few notable tax incentives to consider.
The Small Business Health Care Tax Credit is a tax credit for small employers who provide health coverage to their employees. Generally, the scheme will offer tax offsets of up to $1000 per year.
The instant asset write-off is one of the best tax breaks for small-medium enterprises. This scheme provides tax relief to businesses with an aggregated turnover of up to $500 million per annum. This amount was previously $30,000. It is one of the most effective tax incentives for small-medium enterprises.
There is also the Skills and Training Boost, which is estimated to provide $550 million in tax relief. It is a nod to the fact that small-medium enterprises are the economy’s engine room. Small-medium enterprises are estimated to account for 96 percent of all firms. These entities are responsible for creating 5.1 million jobs. This number is also half of all private sector employment.
Lastly, the government has introduced the Small Business Debt Helpline, which Financial Counselling Australia funds. This scheme will be rolled out in conjunction with the Small Business Debt Relief scheme.
Government grants
Whether you want to start a small business or grow your existing business, the Australian government offers numerous small business grants to help you get started. These grants are offered at the federal and state levels.
The Research & Development Tax Incentive is an Australian government grant that supports innovative processes and products. If you are conducting research and development (R&D) that has an aggregate turnover of less than $20 million, you may be eligible to apply for a tax offset of 43.5% of eligible costs. Similarly, you may qualify for a tax offset if your R&D activity is conducted through a Research Service Provider.
Another essential government grant for small businesses is the Australian Apprenticeship Incentives Program. It is an incentive that encourages businesses to hire apprentices, train employees and provide quality training.
The Australian government also offers an Entrepreneurs’ Programme. This program assists Australian companies in competing globally and improving productivity. It also provides access to expert advice and funding for businesses to develop and implement growth plans.
Entrepreneurs’ program is also available to specific sectors, including tourism and the Northern Territory. These programs are part of the Industry Innovation and Competitiveness Agenda. They assist Australian companies to compete in international markets, including access to advisors, funding and assistance programs.
These programs are designed to help businesses to grow and compete in the market. However, you should also remember that the application process can be time-consuming. If you are applying for a grant, check the grant page carefully to ensure you have everything you need.
There are many other government grants for setting up a small-medium enterprise in Australia. These grants can provide your business with the support it needs to thrive. You may check https://www.companysetupaustralia.com/ to learn more about Australia.
Women-owned businesses
Despite their growing number, women-owned small-medium enterprises in Australia are still a neglected resource. However, these businesses have the potential to contribute more and can help to create a stronger economy. Amongst other things, they provide a vital line of defence against economic challenges.
The Global Entrepreneurship Monitor (GEM) has produced reports on women’s entrepreneurship for the past five years. These reports are collected directly from women entrepreneurs worldwide, and the results are fascinating. The 2020 report has identified the most common barriers to female business owners. However, to make a real impact, more must be done to overcome these challenges.
For example, the Commonwealth Government launched the new Boosting Female Founders Initiative in late 2020. This initiative will run until 2025. It will grant funding to female startup business founders, focusing on delivering new products or services. In addition, the initiative offers mentoring and access to savings and loan programs.
Another program, the Future Female Entrepreneurs Program, will engage young women between the ages of 10 and 24 to cultivate skills in design thinking and technology.
During the first two years of operation, the program will create 6,000 new jobs for women in Australia. The program offers training and mentoring to help women establish and grow their businesses. In addition, the program encourages participants to join small peer support groups
.While there are many barriers to entrepreneurship, the digital market is breaking down these barriers. Women-owned small-medium enterprises can engage with buyers on a more authentic level. It can create an environment where customers can use their purchasing power for good.
