Tax Break for Dubbo Small Businesses
Sunday, August 02, 2009
The Rudd Government is helping small businesses with the Small Business and General Business Tax Break. How does this help your Dubbo small business?
The Rudd Government is helping small businesses with the Small Business and General Business Tax Break. How does this help your small business?
The package is such that small businesses can claim a bonus 50 per cent tax deduction for eligible assets costing more than $1,000 acquired from 13 December 2008 until 31 December 2009, and installed ready for use by 31 December 2010.
To benefit from this Tax Break a small business must have a turnover of less than $2.0 million a year.
This may look good on paper, but unless you actually need to make any investment in capital purchases such as motor vehicles or equipment, how does it actually help small business?
It certainly helps large businesses – the suppliers of motor vehicles, national stationary / office equipment suppliers, hardly normal electical chain stores and the like, but how does it help you, the small business owner in Dubbo or Narromine?
Speaking to an accountant of one of our bookkeeping clients recently, he said that whilst the incentive looks very rosy, you should actually look at the costs involved in the purchase of a new vehicle.
Taking all things into consideration for this particular client, the client was going to be worse off purchasing a new vehicle compared to finding a cheaper second-hand vehicle
Unless you want to buy some equipment, it seems that the Rudd government is doing little to REALLY help small business. It’s helped the Big Four Banks with it’s bank guarantee. It’s helped the Big Supermarkets by scrapping the consumer price-choice website so that it’s harder to see that consumers are being ripped off.
The Australian Government and State Governments are helping the construction industry by announcing massive infrastructure packages – contracts that will be doubtless won by Big Construction Companies
So what can the small business owner to benefit from the Rudd Government’s stimulus packages?
Many small business owners are understandably looking to save money wherever they can, believing that’s the only way that they can increase their income.
Yet at the sametime, they also want to increase their turnover by attracting more customers or upselling existing customers. Small business should support small-to-medium enterprise (SME), a concept that the Australian Federal Government seems to fail to comprehend.
Many small business owners support the Big Supermarkets by buying all their groceries to take advantage of the shopper dockets to get discount fuel.
Instead of supporting small independent green-grocers or butchers, those same clients, rather than paying a few cents more (perhaps) for fuel from independent service station operators support the Big Service Station chains
Those same small business owners are the first to complain that potential customers are going to the large companies or multi-nationals instead of shopping from them
Maybe we should stop pointing the finger at other people, and start asking ourselves, why do small businesses have a problem trading with other small businesses?
Do large companies really care about the local Dubbo, Narromine or Wellington business owner? Not when the head office is in Sydney, Melbourne or even overseas
The positive effect on the local economy would be far wider reaching than all of those small business owners that continue to support large companies who are only interested in making huge profits for their shareholders (many of whom are large multi-nationals themselves).
Go shopping at your local independantly owned business, take business away from large corporations and bring back competition to the market place – you’ll be helping the local econmy whch will in-turn help your own small business. It’s a short term cost for a long term gain.
Information supplied by:MYOB Quickbooks Dubbo Bookkeeping