Budget 2015: How it affects the Test & Tag industry

May 2015

The federal budget for 2015 has seen some positive changes made for people working in the test and tag industry, especially for current small business owners, sole traders and for anyone tempted to start their own test and tag business.

Highlighting this was the government’s decision to allow businesses with an annual turnover of less than $2 million to instantly claim tax reductions for any purchases under $20,000. This means if you’re looking to upgrade your portable appliance tester, or you simply want a brand new one – now is the time to act before the end of the financial year.

Nevertheless, any asset used to run the business is covered by this as well, so this would also include buying additional PAT equipment and certain accessories.

In addition to having the ability to immediately claim tax reductions, these businesses will have their tax rate lowered from 30 per cent to 28.5 per cent – this is the lowest it’s been in almost 50 years. Moreover, any unincorporated businesses (i.e test and tag sole traders) have been given extra support with a 5 per cent tax discount up to $1000. 

Anyone looking to start up their very own test and tag business should also be quite pleased with these changes.

Start-ups will be able to immediately deduct the professional costs that are associated with starting up a new business, such as getting accounting or legal advice. Likewise, registering your new business will become a more streamlined process – certainly a handy improvement. 

We suggest you seek appropriate advice from your accountant before you proceed with anything. But overall, the 2015 budget has certainly created a positive environment for current test and tag business owners and has provided an easier and cost-effective way for future business owners to enter the test and tag market.