Hip Hip Hooray for Small Businesses
SA Businesses: From 1st January 2019, the current Payroll Tax threshold increased from $600,000.00 to $1.5million. Businesses that exceed the $1.5million threshold now receive a deductible amount of $600,000.00 and those businesses reporting their annual taxable wages above $1.5million, have a variable payroll tax rate of 0% to 4.95%. This is a big win for small businesses who were always willing to employ new employees but had no incentive as they were taxed if their labour increased. For more information regarding this, visit the Revenue SA website.
All Small Businesses: A win for small business around the country, is the extension of the Instant asset write-off for small business, PLUS a potential increase from $20,000.00 to $25,000.00 in the value of the asset purchased. This is currently a proposed government change, that should be confirmed shortly, and will be available to small businesses with an annual turnover of less than $2million up until 30 June 2020. It represents another opportunity for the small business sector to grow their business. Watch this space, and we will keep you updated.
It is time for many small businesses to celebrate!