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The Winners and Losers in Business – Australian Budget 2013

Posted on: May 29th, 2013 by Walid Abou-Halloun
Categories: Business and News. Tags: Budget.

The Winners and Losers in Business – Australian Budget 2013

With the 2013 Budget out of the way, it’s time to sift through the reports to discover those who gain from increases in this year’s budget and those who are up for a bit of a rude shock.

Businesses in particular industries, including health and care, education and some random ones like film and gaming, all receive a healthy boost indirectly through opportunities for more work and research. The biggest losers are higher income earners, with the government cracking down on tax evasion and superannuation.

And the Winners are…

  • National Broadband Network users: Small Businesses will be provided with assistance to access the NBN to the tune of $12.9 / $7.2 million.
  • Textile and Clothing Industry: Contractors receive protection entitlements
  • Innovation and Investment fun: has received the tick from the government and will continue to operate with a $500 million investment into the Industry Innovation Precincts
  • SME’s applying for Government contracts: $29.4 million has been put aside into the ‘Enterprise Solutions Program’, targeted at innovative small and medium businesses who wish to apply for grants to assist with feasibility studies and proof of concept. Grants of up to $100,000 are available for the former and up to $1m for the latter.
  • Businesses serving:
    • Health & Care: $226 million for cancer treatments and $14.3 billion towards the National Disability Insurance Scheme will flow through to businesses serving these needs.
    • Education: the Government has provided nearly $10billion for schools to upgrade their facilities on a needs-basis as well as $186 million for research projects.
    • Construction and Engineering: $24 billion has been set aside for new construction projects including railways and upgrades to motorways.
    • Film Industry: $41.6 million has been tipped into the film industry in a bid to attract large-budget productions.
    • The Gaming Industry: An Interactive Games Fund containing $20 million aims to encourage the growth of interactive video gaming in Australia.

Our condolences to the Losers…

Large trust funds: Large trust funds now need to make Pay As You Go payments on monthly installments, backed up by a trust taskforce the Tax Office got special funding for.

  • Large businesses writing off more than $2 million in expenses every year. A new taskforce focusing on cracking down on the act of dividend washing aims to clean up big businesses avoiding tax.
  • Large earners putting money into their Superannuation fund. Major changes to the way superannuation funds are allowed to be organized will require large investors in their funds to seek professional help to ensure they are still getting the most benefits.
  • 457 Visa applications: The fee for making a 457 visa application has doubled from $455 to $900 meaning businesses utilizing the visa to employ overseas workers will now be thinking twice about it.
  • Self Education expenses: are now capped at just $2000
  • Businesses acquiring exploration companies: previously a tax deduction applied to businesses acquiring exploration companies. This now only applies to companies actually engaging in exploration activities.

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