BELMONT businesses are winners in the Federal Government’s response to the Henry tax review, including company tax cuts and instant asset write offs for assets under $5000.
The Federal Government unveiled its response to the tax review last week, including tax cuts from 30 to 28 per cent in 2012-13 for small businesses with a turnover of less than $2 million.
Chamber of Commerce and Industry WA chief executive James Pearson welcomed the cuts and additional tax concessions for small businesses.
However, he said imposing a resource super profits tax to pay for these sweeteners would penalise one of the State’s most successful industries.
Mr Pearson said the Federal Government was playing “wedge politics” with Australian businesses and pitting the resources sector against other employers.
“WA businesses more than ever are being relied upon to lift the mation’s economy out of the downturn,” he said.
“The penalties to be imposed on the resources sector will make that task much harder.”
Belmont Business Enterprise Centre chief executive Carol Hanlon said the tax review acknowledged small business.
“Small business is the backbone of Australia and where a large mining firm can come and go quickly, as was seen at Ravensthorpe, it is the small business that struggles to keep the thread of a community together,” she said.
“Statistics show that one in every 10 houses in Australia has some sort of small business running from its home-based location and many small businesses are still struggling from the GFC.”
BEC chairman Tim Hammond said reducing the company tax rate would increase cash flow and help small businesses reinvest profits back into their company to help them grow.
The small business instant write off for assets valued at under $5000, up from $1000, would start from July, 2012.
Prime Minister Kevin Rudd said he received positive reactions about the write off while in Belmont last week.
He said the tax breaks for small business would lead to more family time, as there would be less bookkeeping and small business owners would pay less money to the taxman.