‘En­gine room’ gets more fuel

Southern Gazette (South Perth) - - NEWS -

BEL­MONT Busi­ness En­ter­prise Cen­tre chief ex­ec­u­tive of­fi­cer Carol Han­lon wel­comed the re­duc­tion in the com­pany tax rate to 27.5 per cent for small and medium busi­nesses with an­nual turnover less than $10 mil­lion.

Swan MP Steve Irons said the re­duc­tion would ben­e­fit about 6905 com­pa­nies in the elec­torate.

“Since many small busi­nesses are not com­pa­nies, from 1 July 2016, the Gov­ern­ment will also in­crease the un­in­cor­po­rated small busi­ness tax dis­count to 8 per cent and ex­tend the thresh­old from a turnover of $2 mil­lion to $5 mil­lion,” Mr Irons said.

Af­ter the ini­tial in­crease, the dis­count will be in­creased in phases to a fi­nal dis­count rate of 16 per cent from July 1, 2026.

Ac­cess to the small busi­ness cap­i­tal gains tax con­ces­sions will re­main at a turnover of less than $2 mil­lion.

“Small busi­nesses are the en­gine room of our lo­cal economy and the back­bone of our lo­cal com­mu­nity,” he said.

“These tax cuts will pro­vide sig­nif­i­cant ben­e­fit to our lo­cal busi­nesses and help drive jobs and growth in our lo­cal economy.”

While the tax re­lief and thresh­old in­creases were wel­comed, Ms Han­lon said the Bel­mont BEC was look­ing for more sup­port for small busi­ness ad­vi­sory pro­grams to help strug­gling en­ter­prises in the cur­rent tough cli­mate.

“Small busi­ness in WA are do­ing it tough and the down­turn is hav­ing a domino ef­fect down the sup­ply chains and con­sumer con­fi­dence is not pick­ing up,” Ms Han­lon said.

“We were look­ing for any bud­get an­nounce­ment for small busi­ness ad­vi­sory sup­port pro­grams for us to be able to pro­vide ad­di­tional sup­port for small busi­nesses.”

She said 25 per cent of WA small busi­nesses had a turnover of un­der $50,000, which high­lighted the ur­gent need to in­crease busi­ness sup­port pro­grams.

Ms Han­lon wel­comed sup­port for youth to start a new busi­ness. “But one of the is­sues here in WA and na­tion­ally is sup­port for those that are al­ready in busi­ness to sur­vive,” she said.

“It is hard work and there are lots of risks in­volved in growing small busi­nesses which have been dis­rupted by tech­nol­ogy.”

La­bor can­di­date for Swan Tammy Solonec says the bud­get will ex­ac­er­bate in­equal­ity.

Swan MP Steve Irons says tax cuts will help lo­cal busi­nesses and boost jobs.

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