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Govt aims to help start-up businesses

 

The Abbott government has put together a suite of measures to assist start-up businesses.

New businesses will be able to deduct professional costs immediately next year rather than writing them off over five years.

Announcing the change from July 2016 ahead of next week's budget, the government said people needed advice from lawyers and accountants when they started a businesses.

This can be expensive and a drag on cash flow.

"Allowing these costs to be deducted immediately will allow more money to be invested in growing the new business," Treasurer Joe Hockey and Small Business Minister Bruce Billson said in a joint statement on Wednesday.

Business registration will also be streamlined to a single online registration site, fixing the current fragmented and complex process, saving time and money, they said.

At the same time, small business owners will also be able to change the legal structure of their business without incurring a capital gains tax liability.

Mr Billson said it would reduce some of the complexity of starting a new business and provide owners with more flexibility to determine how they grow.

Other changes will make it easier for small businesses to access the capital they need to grow and come on top of changes before parliament to expand tax concessions for employee share schemes.

The government is also investigating whether some of the regulatory requirements covering corporations can be removed or relaxed to reduce compliance costs.