Tax relief measures for small businesses in Tuesday’s federal budget will have a positive impact on the central Victorian economy, the Bendigo Business Council says.
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Chief executive officer Leah Sertori said raising the small business turnover threshold from $2 million to $10 million would affect a significant number of businesses in the region.
It could be anywhere up to probably $50,000, depending on the business, so that should work out beautifully for small businesses in Bendigo.
- Dennis Barnett
Ms Sertori said the increase would allow small and medium-sized businesses to expand, and boost employment.
“It will allow small and medium-sized businesses to consider creating new roles within their organisation, employing more central Victorians,” she said.
“It’s a signal from the Australian government about the value and contribution of small to medium enterprises to Australia’s [gross domestic product].”
The Human Mechanics owner Arj Perera said his business would be one to benefit from the redefined tax regime.
He said the organisation was experiencing a “growth spurt” and already had plans in motion to open additional venues, but the changes would expedite the process.
“For us it’s going to be definitely another venue or two in the next 12 to 18 months, and then where we go from there we’ll have to see how we grow it,” he said.
“We were going to do it anyway but I think having a bit more financial [security] is going to make things happen a bit faster.”
AFS & Associates business services partner Dennis Barnett said the tax change was a promising move from the government, with some of his clients set to be tens of thousands of dollars better off.
“Realistically if they adopt those small business depreciation rates it could be anywhere up to probably $50,000, depending on the business, so that should work out beautifully for small businesses in Bendigo,” he said.
Income tax cut ‘immaterial’ in Bendigo
Income tax cuts for people earning between $80,000 and $180,000 a year will have a minimal impact on Bendigo residents, while doing nothing to support the most vulnerable, experts say.
AFS & Associates business services partner Dennis Barnett said the $6.04 weekly boost to those workers’ pay packets would be “immaterial” at a local level.
“There’ll be a small amount of the population that has a slightly higher amount of income in their hand after tax, but it’s not going to be anything drastic,” he said.
“It would be of great effect if they raised the $37,000 limit rather than the $80,000 limit but it would be more costly if they did that as well.”
Bendigo Family & Financial Services general manager Jenny Elvey said she would have liked to see the lower tax threshold raised and was frustrated by the budget’s lack of support for struggling families.
“I'm just probably a little bit disappointed that there’s not more support put in for low income earners to improve their situation in life, they’re sort of stuck where they are,” she said.
