With major infrastructure development on the horizon and tax benefits for small to medium business, the Federal Budget looks to positively impact the industrial and commercial property markets.
Infrastructure a win for the industrial market
This year's Federal Budget enhanced the long term economic health of the eastern seaboard with its focus on infrastructure. The Melbourne and Brisbane Inland Rail will positively impact the industrial market with a likely increase in demand for industrial properties in Melbourne required to assist in the delivery of this vital infrastructure.
Less taxing for business
Another key positive for property is the tax cuts for small to medium businesses with an immediate injection of spending for businesses sub $10M in turnover at a reduced company tax rate of 27.5%. By 2018/19 all business sub $50M will receive a similar tax break. Also positive for businesses is the $20,000 instant tax write off encouraging all start ups and SMEs to spend on technology, ensuring their businesses can adapt to the changing environment.
Be sure to invest in some new equipment before EOFY.
*This article provides general background information only and does not constitute business, accounting, taxation or financial advice.