Australia’s small businesses are said to be receiving a tax cut in tonight’s budget, part of a portfolio that Small Business Minister Bruce Billson described as “delicious” and “delightful”.
Mr Billson told ABC radio that the tax cut, expected to be of at least 1.5 per cent, aims to boost and encourage the small business sector, create more jobs and strengthen the nation’s economy.
Treasurer Joe Hockey is certainly hoping this year’s budget is received better than last year’s, which left the Abbott Government reeling after they introduced health and education cuts, tax hikes, and stricter welfare regulations.
The Australian Chamber of Commerce and Industry (ACCI) has welcomed the Government’s move to focus on small business, saying that the 1.5 per cent tax cut for businesses with less than $2 million turnover will also benefit tradies, sole operations and partnerships, among others.
“These deductions are particular powerful when combined with recently announced measures to help new businesses, including allowing new start-ups to immediately deduct professional costs, such as for legal and accounting services, as well as streamlined company registration and removing barriers to crowd-sourced equity funding,” Kate Carnell AO, CEO of the ACCI, said.
“Small business is the engine room of the Australian economy, so support for these businesses will boost overall jobs and investment. The government’s measures will help to restore confidence among small businesses.”
Peter Strong, Executive Director of the Council of Small Business of Australia (COSBOA), was not completely convinced a tax break should be the only focus for small businesses.
“Everybody likes a tax break. Nobody says ‘no, thank you’, but it’s not the big thing,” he said.
“None of my people get excited about the tax break. What we want is that focus on spending.”