Labor totally stuffed the economy and Hockey has talked big but there was only a lot of window dressing.  Ignore all the rhetoric and posturing, and the drivel from Shorten in his Reply, let's look at the changes that will affect small and family businesses.

Incidentally, there is still no reliable definition of a small business; under Howard, it was employment up to 100, under Labor it was 15 people.  This needs to be defined for both tax and employment law purposes.

Lower Company Tax

Will be cut from 30.0% to 28.5% by July 2015.  Put it in dollar terms and it's not much.  Most small business operate as sole traders, partnerships or trusts, so the rate doesn't apply to them.  Even though the rate will drop for a company, the owners still end up paying the personal marginal rate when taking out the profit after paying tax (franked dividends).

Higher Income Tax

The Temporary Budget Repair Levy applies a rate of 2% on the taxable income in excess of $180,000 pa., applying from 1 July 2014.  Then, add the new Medicare Rate and other levies and the top tax bracket becomes 49%.

Superannuation Levy (SGC)

Superannuation rates increase to 9.5% from 1 July 2014, remaining at that level until 1 July 2018 when it increases by 0.5% a year until reaching 12%.

Medicare Levy

The Medicare Levy increases to 2% of taxable income from 1 July 2014.  The Surcharge remains the same and applies at varying rates to those without adequate private health insurance cover.

Write-off for Assets Costing Less Than $6,500 (GST excl.)

Individual assets costing less than $6,500 will have this instant write-off level reduced to $1,000, applying to assets installed after 1 January 2014.  (Linked to the Mining Tax Repeal Bill).

Acceleration Deduction on Vehicles Costing More Than $6,500 (GST excl.)

The immediate write-off of $5,000 will be reduced to $1,000, for vehicles first used after 1 January 2014.  (Linked to the Mining Tax Repeal Bill).

Concessional Superannuation for 2013/14

(First time the Budget has not tinkered with Super).  The concessional (tax deductible) contribution caps are based on age, and are for this year and the next:

                                                                                                     2013/14

               Age 58 and under on 30/6/13                                 25,000

               Age 59 and over on 30/6/13                                    35,000

                                                                                                     2014/15

               Age 48 and under on 30/6/14                                  30,000

               Age 49 and over on 30/6/14                                     35,000

Abolition of Tax offsets

These will be abolished from 1 July 2014:

               Dependant Spouse

               Mature Age Worker

"Three Business Boosters"

I use inverted commas as only a public servant or politician can say that 'he's from the government and he's here to help'.

-     An ombudsman to inform businesses about government services and programs, and help to resolve disputes.

-     A new unit to help small business tender for government projects.

-     Changes to unfair contract provisions when small business deals with big business.

Could be a step in the right direction.  Probably end up being portals that are long on rhetoric but don't help in a practical way.  And, remember Labor set up a Small Business Minister who, as far as I can see, operated at a huge cost and achieved nothing.

NOTE : If you have payroll in a software package you will have to update for the changes in medicare levy, superannuation, and tax offsets.