Opposition claims small business ignored in Federal Budget
Small business are not winners in the Government’s Federal Budget says Shadow Small Business Minister Steven Ciobo.
“Labor’s Budget has missed the opportunity to assist Australia’s 2.4 million small businesses which are the key to Australia’s economic recovery.”
Ciobo believes that they neglected to cover off one of the biggest problems facing small business – cash flow.
“Kevin Rudd and Labor failed in this Budget to help small business cash flow. For Australia’s 2.4 million small businesses, cash flow is their single biggest challenge, yet they’re expected to help pay off Labor’s record net debt of $188 billion,” Mr Ciobo said.
Ciobo made particular mention to the Government’s increase in the Small Business and General Business Tax Break (Investment Allowance) from 30 percent to 50 percent, claiming that it will be of no use to small business.
“Where are small businesses going to get the money to go and buy new equipment and machinery if they are under cash flow stress?”
Ciobo believes the Coalition’s 6-point Small Business Action Plan is more in tune with the needs of small business as it provides “real assistance for small businesses” to put them on the “road to recovery and give them the support they need to lead Australia’s economic recovery.”
“The Coalition’s action plan offers a financial lifeline to struggling small businesses through incentives that will help boost cash flow, ensure businesses remain profitable, and reduce the costs of employing people so more people are the pay roll.”
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I absolutely agree! All they did was raise the 30% to 50%. Which is sure nice, if you’ve got equipment to purchase, and if you’ve got the available cashflow to purchase it!
how does that stimulate long term business growth? All it helps is the suppliers of this equipment and their sales. Just like the other ‘handouts’.
Totally agree with article and Emma’s comments…
KRudd statements during the budget “sideshow”, made reference to 2.4m small businesses, how important they are to economy and that they are struggling during the GFC.
Providing an investment allowance offers little support….as in this environment, SME’s are protecting there business for the worst, reducing costs where possible, possibly downsizing therefore why would I buy new equipment?
What about a temporary reduction in company tax (down 5% for 3 years). The government would recoup the 5% when the owners of the business pay themselves, or pay a dividend to shareholders. This will provide an immediate cash flow assistance for the business without costing the govt a penny….
What do you think…?
Very true – encouraging small businesses to spend money they don’t have isn’t helping anyone. But great for any business who needs to purchase items anyway – let’s hope they’ll choose Australian items where possible.
I would have loved to see tax breaks or vouchers for practical items that all businesses need (stationery & computer consumables for instance) or for professional services that will help businesses move forward (coaches, accountants, attending seminars/conferences, etc) as that could really help immediately and helps other local businesses, too.