Steve Southon, chief tax officer for the National Australia Bank, was in Tamworth yesterday to speak to a business breakfast on the implications of the federal Budget, and how employers can make the most of the changes.

Mr Southon said the best measure for small business was the extension of the tax write-off for equipment purchases valued up to $20,000, to businesses with an annual turnover of up to $10 million.

This is a change from the $2 million threshold introduced in last year’s budget.

It allows small businesses to claim an immediate deduction for each asset purchased costing less than $20,000 until June 30, 2017.

Mr Southon said the measure meant a business with a piece of plant that still had a year or two of depreciation left on it would now be encouraged to replace it immediately, a plus for both that business and the one from which the new equipment was purchased.

“It’s to the benefit of everyone,” he said.

Another positive was the simplification of tax compliance measures for businesses with a turnover of up to $10 million.

“The less time a business has to spend on its books, the more time there is to spend on the actual business,” Mr Southon said.

More could be done, though, on this front, he said, to really boost productivity across the sector.

“We need to crack the paperwork,” Mr Southon said.

“I really applaud (this Budget), but the next step is to make it even more simple – I mean really simple tax compliance (measures), so we can free up time for small business owners that they can spend thinking about their business.”

Reductions in the corporate tax rate are another sweetener, with Mr Southon saying any reduction in the amount of tax small businesses had to pay meant more money for other aspects of their operation.

“It frees up more money and gives these businesses more choices,” he said.