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The Financial Planning Association of Australia (FPA) has said the big winners of tonight’s “responsible” 2015-16 Federal Budget announcement are set to be small business owners.
According to Dante De Gori, General Manager, Policy and Conduct at the FPA, while the FPA has concerns with the proposed changes to the asset-test tapering rate for part-pensioners, it broadly welcomes the initiatives announced for small businesses.
“With changes to the part-pension formally on the table, we are likely to see a number of part-pensioners being impacted negatively. This will obviously create financial concerns for the broader community, particularly given our ageing population.
“At the same time, a welcome initiative of tonight’s Budget is the $5.5 billion Growing Jobs and Small Business package which is aimed at supporting small businesses so they can invest and grow more. This package will assist financial planners and consumers alike – financial planners are often small business operators themselves and they also provide advice to many Australians who run their own business or are seeking to start up their own business.
“Specifically, the reduction in the company tax rate and a 5% discount for sole traders along with an immediate tax deduction for items purchased for under $20,000 is a fantastic initiative,” Mr De Gori said.
The FPA is also pleased the government maintained its promise for no adverse changes to superannuation. And it has called out the change to the terminal illness provisions, which will see an extension of the requirement from 12 months to 24 months, saying that this will provide much needed relief for those individuals and families during a difficult time.
“The government made a clear promise it would leave superannuation alone and it is reassuring to see this is still the case. We welcome the process of the superannuation system being discussed through the current tax discussion paper, which will allow the system to be reviewed on its own merits, rather than allowing it to be tinkered with for the sake of debts and deficits in the budget.
“There are some clear standouts in tonight’s budget that we hope will bolster the financial future of many Australians. As the leading professional association for financial planners, our key interests are not only for our members as financial planners but also for their clients, the wider community,” Mr De Gori said.
The FPA will be turning its attention now to the tax discussion paper, which is calling for submissions by 1 June 2015.