John Hart, CEO of Restaurant & Catering Australia (R & CA), has indicated that the hospitality industry will receive significant benefits from the new Budget with a reduction in the company tax rate of 28.5% for those businesses that have a turnover of less than $2 million, while those businesses that are unincorporated will ge eligible for an annual 5% tax discount of up to $1000.
Over 90% of all cafes, catering businesses and restaurants in Australia are small businesses with an average turnover of around $1 million so to receive tax relief in such a tough economic climate has been welcomed wholeheartedly by the sector.
Added to this is the ability to write-off assets up to the value of $20,000. This means that businesses can now invest in new equipment, for example, that will help them to deliver a better experience for their customers.
Utilising the Budget's Jobs and Small Business package, businesses will be able to deduct immediately those professional costs associated with starting up a business and business registrations will be streamlined.
Hart said, "Allowing businesses to immediately deduct professional costs and streamlined business registration will assist small hospitality businesses at the time when their resources are stretched very thin."
As an added bonus, the government also announced that it will provide additional funding to Tourism Australia in order to support its marketing activities overseas that will boost both our tourism and hospitality industries.
Source : Hospitality Magazine, 13 May 2015