How is small business going to benefit from the budget?

By Greg Bell

Every time a budget comes around, whether on a local government or a national level, there are winners and losers. It seems impossible for government bodies to be able to give using one hand without taking with the other, such is the balancing act that presenting a budget presents.

And as of 12 May, we have the latest national budget, handed down by Federal Treasurer Joe Hockey. There are some changes that will impact commercial real estate on the Gold Coast, and a number of other areas. So will commercial leasing in Surfers Paradise and beyond prosper or wither under the latest budget? 

Small business growth backed 

There has been positive spending on small businesses in Australia, which has pleased a huge range of industry voices. In a 12 May response to the federal budget, the Chamber of Commerce and Industry Queensland (CCIQ) noted that small business is a fundamental part of the national economy, referring to it as the backbone – a role it plays in the Sunshine State too.

"This federal budget will materially benefit the state's 403,000 small businesses that employ more than one million Queenslanders," said Nick Behrens, director of advocacy at the CCIQ. 

"When coupled with the range of stimulus measures, small business is obviously the biggest winner from this budget."

In fact, Mr Behrens thinks this is the best budget for small companies in about 20 years. He also praised the language of the budget as being much more positive than last year, which will do great things for boosting confidence across Australia. These changes could see more interest in retail leasing on the Gold Coast, as well as spurring people to make an investment in a local property development – areas where Ray White Surfers Paradise excels. 

A $5.5billion package

In the official press release from Mr Hockey alongside Prime Minister Tony Abbott and Minister for Small Business Bruce Billson, a specific $5.5billion programme was announced. Named Growing Jobs and Small Business, its aim is to enable small companies to hire more people, expand their reach more and invest in further development. 

The statement also notes that unemployment will be targeted through the ongoing creation of jobs. While state treasurer Curtis Pitt noted in a 7 May release that Queensland's jobless rate remained steady at 6.6 per cent over April, a push for more people entering the workforce could spur excellent growth for businesses interested in industrial leasing on the Gold Coast

One of the main benefits of the small business package to allow growth is extensive tax cuts for more than 780,000 companies, which is expected to save people $3.25billion in total. These cuts will be implemented from 1 July this year. 

According to Mr Hockey's statement, these will be the lowest taxes for private and public companies in more than 45 years – since 1967. This should bake business expansion and further commercial leasing on the Gold Coast and beyond particularly appealing. 

Less red tape allows more forward movement

Further to the tax cuts, the federal budget also has reductions in red tape for small business. Changes to the fringe benefits tax, capital gains tax and possible adjustments to the Corporations Act could reduce regulation and make it easier for small companies to grow and change their legal structure without incurring significant fees. 

Across the board, this appears to be an excellent budget for the underdog. Anyone who wants to buy commercial real estate on the Gold Coast could soon find an abundance of businesses looking to lease your property, with barriers being broken down to enable exponential growth. 

To find out more about commercial real estate opportunities here on the Gold Coast, make sure to get in touch with Ray White Surfers Paradise. 

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