{"id":41646,"date":"2023-10-20T15:15:28","date_gmt":"2023-10-20T15:15:28","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/federal-budget-2013-little-to-celebrate-for-start-ups-in-swans-farewell-budget-startupsmart\/"},"modified":"2023-10-20T15:15:28","modified_gmt":"2023-10-20T15:15:28","slug":"federal-budget-2013-little-to-celebrate-for-start-ups-in-swans-farewell-budget-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/federal-budget-2013-little-to-celebrate-for-start-ups-in-swans-farewell-budget-startupsmart\/","title":{"rendered":"Federal budget 2013: Little to celebrate for start-ups in Swan\u2019s farewell budget – StartupSmart"},"content":{"rendered":"
The 2013-14 federal budget was handed down last night. As expected the budget was very plain and focused on education, disability and infrastructure spending and savings that will be paid for by families and corporate business.<\/p>\n
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The budget deficit reached $19.8 billion against the forecasted $1.5 billion surplus. The forecasted deficit for 2013-14 is $18 billion and slowly returning to the black in the following four years.<\/p>\n
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The government has blamed $17 billion of downturn in revenue as the cause of the deficit, to me this is a lame excuse for the fact that they have not forecasted correctly, as even if they had collected all their $17 billion in revenue the budget would still be $2.8 billion in the red.<\/p>\n
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Given this, there was little to celebrate for business and start-ups in what may have been Labor’s last budget.<\/p>\n
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Superannuation reforms reconfirmed increasing the concessional contributions cap to $35,000 from:<\/p>\n
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This is a huge win for small business given the amount of tax savings that can be achieved by the extra $10,000 deposit.<\/p>\n
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Venture funding gets a boost<\/strong><\/p>\n <\/p>\n The government will make changes to the Venture Capital Limited Partnership (VCLP) and the Early Stage Venture Capital Limited Partnership (ESVCLP) regimes. These changes include:<\/p>\n <\/p>\n <\/p>\n <\/p>\n The government also pledged funding of $350 million of new funding into high growth enterprises.<\/p>\n <\/p>\n SMEs get $29.4 million in funding<\/strong><\/p>\n <\/p>\n Small businesses have been given funding to help them in becoming competitive in vying for government tenders. This is great news for start-ups and businesses looking to secure government contracts. Being competitive and competing against big business has always been an issue for start-ups. If the government sticks to this promise, this would be the biggest (although not much) win for start-ups from this budget.<\/p>\n <\/p>\n <\/p>\n Increase in business name fees:<\/strong> While only minor, this will still add to the cost of starting a business.<\/p>\n <\/p>\n Preventing \u2018dividend washing\u2019 from July 1, 2013:<\/strong> The Government proposes to close a taxation loophole that enables certain sophisticated investors to engage in \u2018dividend washing\u2019 and effectively trade franking credits.<\/p>\n <\/p>\n Closing tax loophole to raise $4 billion:<\/strong> To me this has always been a focus of the ATO and the government. I do not see the raising of $4 billion dollars from this measure. I actually think the administration of this will cost more than the funding, which was the same as the mining tax.<\/p>\n <\/p>\n Corporate businesses were big losers, with the following measures:<\/strong><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/b><\/p>\n <\/p>\n All in all, this budget looks to be one of the worst I have personally seen over the years. Given Labor’s last attempt and track record to raise revenues ended in a $19.8 billion deficit, I’m not feeling confident that anything good will come from this.<\/p>\n <\/p>\n Sit tight for the Coalition\u2019s response.<\/p>\n","protected":false},"excerpt":{"rendered":" The 2013-14 federal budget was handed down last night. As expected the budget was very plain and focused on education,<\/p>\n","protected":false},"author":2,"featured_media":60776,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/41646"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=41646"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/41646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/60776"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=41646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=41646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=41646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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Budget lowlights<\/h2>\n
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