June 2021

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Winter is here, the perfect time to rug up and plan a mid-year break to the snow or to warmer climates. But before you head off, June is also the month to take advantage of any last minute opportunities to reduce your tax bill before the end of the financial year.

Small business owners have even more incentive to explore last minute tax planning, after a 100 per cent deduction for assets up to $20,000 was announced in the May budget. The early signs are that the budget’s focus on small business stimulus measures was well targeted.

The Australian Bureau of Statistics’ May survey of private capital expenditure showed a marked uptick in spending intentions for 2015-16 by the services sector, where small businesses tend to operate. Between February and May this year, estimated capital expenditure for 2015-16 fell 35 per cent for miners but rose 4.2 per cent for manufacturers and 6.6 per cent for services.

Consumer confidence is also improving; it hit a six-month high post budget with 27 per cent of consumers positive about their financial outlook compared with just five per cent a year earlier. The ANZ/Roy Morgan consumer confidence rating rose 3.6 per cent in budget week before easing one per cent the following week. If people feel positive about their finances they are more likely to spend, which is good for the economy.