Pol­icy fails to mas­sage CEO

Southern Gazette (Belmont) - - STREET WATCH -

MAS­SAGE Club chief ex­ec­u­tive Grant Jones says tax cuts are great if you are turn­ing a profit but many small busi­ness own­ers in WA are strug­gling to stay afloat.

Launched in 2012 with a fo­cus on a high-qual­ity, rep­utable ser­vice with qual­i­fied masseurs, Mas­sage Club now op­er­ates out­lets in Boor­a­goon, Suc­cess and Joon­dalup.

Mr Jones said while the Boor­a­goon and Suc­cess op­er­a­tions were mak­ing money, the Joon­dalup store opened more re­cently and was still find­ing its feet in Perth’s tough eco­nomic cli­mate.

“You can re­duce tax as much as you like but if you’re not mak­ing money, a tax cut isn’t go­ing to help,” Mr Jones said.

“Even if you are, a 1 per cent tax re­duc­tion is not ex­actly ex­cit­ing. To use the Suc­cess clinic as an ex­am­ple, we turn over $700,000 per an­num, with a mar­gin of about 10 per cent.

“So a $70,000 profit equates to a pre­vi­ous ap­prox­i­mate tax bill of $19,950, now re­duced to $19,250.

“With­out try­ing to be dis­re­spect­ful, a sav­ing of $700 a year is in no way mo­ti­vat­ing or stim­u­lat­ing and merely gets ab­sorbed into the grow­ing ad­min­is­tra­tive costs we have in man­ag­ing our GST, BAS, su­per, etc.

“I think it’s a bit of smoke and mir­rors – the Gov­ern­ment wants to be able to say those magic words ‘tax cut’ but the re­al­ity is it will not make a dif­fer­ence at all to the ma­jor­ity of small busi­nesses in this en­vi­ron­ment of shrink­ing mar­gins.”

Mr Jones said re­turn­ing a fairer share of GST to WA would do far more to stim­u­late the lo­cal econ­omy, ben­e­fit­ing all busi­ness own­ers.

“It’s great that we’re help­ing to pay for roads in Mel­bourne and Syd­ney but I don’t get to drive on them,” he said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.