The Principles of Arts Funding and Why It's Unwise to Cut Off Your Arm
One of the driving beliefs of the 2015 Federal Budget is that small businesses are well placed to energise the national economy. They are strong of arm and ready to 'have a go', as the language of the budget has it. The budget certainly helps them to get moving. If a small business has an annual turnover of less than $2 million, from now until 30 June 2017 there’s an immediate tax deduction for every item purchased up to $20,000 (the threshold used to be $1000). Cars and vans, kitchens, machinery, computers... anything under $20,000 bought for that business is instantly 100% tax deductible. There is more: the company tax for these businesses is cut from 30% to 28.5% - the lowest small business tax rate in more than 50 years - and there’s a fringe benefits tax discount on mobile electronics. All in all, it’s a $5 billion boost to GDP over two years. Quite an adrenaline hit for the economy. This is the opposite of ‘trickle-down economics’ – the idea that econo