SMALL businesses will benefit from the 2019/20 Federal Budget through instant asset write-off increases for businesses with an annual turnover of under $50m.
The tax benefit was initially available to businesses with turnovers of less than $10m for assets of up to $20,000, but will now increase to include medium-sized business who will be eligible to claim up to $30,000.
The incentive has been welcomed by She’s Apples director Phil Telfer who said a focus on small, locally owned businesses was key to continuing community growth.
“She’s Apples has been in business for 30 years,” Mr Telfer said.
“We understand the volatility of the fruit and veg game.
“Obviously with seasonal, weather and economic issues, it makes it hard to plan your future in the industry.
“With these kind of incentives it gives businesses greater confidence in their brand and therefore lets them make long term decisions.
“With a $30,000 write off, you can then begin thinking about employing more staff or investing in the business which is key to growth.”
Mr Telfer stressed the importance of communications between all tiers of government to get the best possible outcome.
“I think it’s important for the federal government to liaise with local government to find out what we need in regional areas,” he said.
“There’s good growth happening in the South East region, but more investments like this need to happen to continue that growth.
“As a fresh food market, our biggest competitors are the big supermarket chains – there’s more price cutting and cheaper products.
“We are not able to give consumers the same amount of price cutting as we stock a higher quality product – so it is important to give small businesses these little bits of help to continue our viability.”
Other budget benefits for businesses include $225m towards the skilled workforce and $60m to increase the Export Market Development Grants Scheme.
“Australia’s small businesses do the heavy lifting by strengthening the economy and supporting our communities,” Member for Barker Tony Pasin said.
“There are around 3.4 million businesses employing around 7.7 million workers in Australia and 21,935 of these businesses are in Barker.
“These businesses will find it easier to operate and grow their business under our government.”
