This year, AuSAE was at the Treasury Budget Lockup and are able to bring you a brief report.

The budget outlines a relatively soft economy over the forward estimates with long term growth and income projections being adjusted downward. However, since May 2012, employment has grown by over 500,000 jobs. The services sector has added 90% of these. The association sector is a part of that growth.

For the association sector (as distinct from the sectors served by associations), the budget was unremarkable. The strong features of this budget centre around superannuation, tax cuts for small business, jobs and innovation. The economic outlook remains soft as the economy transitions from mining establishment toward mining operations and the services economy.

Some small associations may benefit from the small business tax concessions where they rely on mutuality for tax exemptions and they have taxable non mutual income and may be able to access the immediate tax deductibility of assets up to $20,000 through to 30th June 2017 where that asset is used to attract non mutual income. There may also be some benefit for small to medium associations (under $10mil in turnover) from the simplification of GST administration which will be trialled from the 1st July 2016.

Associations may also benefit from the signing of free trade agreements with the USA and and China. The Federal Government is investing $1.8 million to expand the Open for Business Website which may offer associations opportunities for growth.