‘Engine room’ gets more fuel
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.