I am disappointed that the Federal Government has not seized the opportunity to stimulate business to business activity with its statement today. I would have liked to see a sizeable investment allowance of, say, 40% for approved capital investment. This would get businesses investing in their businesses and thereby driving a strong flow on through the economy. There are more sectors than housing which could do with government attention.
An investment allowance coupled with accelerated depreciation would stimulate business to business spending, help small business owners reinvent in their businesses and boost the economy including jobs. It worked in 1976 when Malcolm Fraser introduced the same measures. They also delayed some tax payments to give businesses cash. The government could consider this if things get tight.
With an investment allowance and accelerated depreciation in place newsagents could complete a shop fit, but new equipment or undertake other business investment because of the encouragement of the benefits available.
The ANF and the associations should have been straight out with a press release on this announcement putting forward a newsagents position and how the 1.88 million small businesses, which are the back bone of the economy have once again been neglected in the stimulus package.
I bet other industry associations and representatives have put their members voice forward.
Daniel,
You are right. If the ANF were the national body for newsagents it would have made a statement by now and ensured that the voice of newsagents was heard on this matter.
I talk to newsagents every day and many are holding back on investing in shop fits and the like. While this can go on for a short while, in the longer term it will let their businesses down. Hence the need for Government led stimulation.
Mark
Mark, I dont agree what you are saying about goverment putting money into capital investment, but I do belive that the rules regarding depreciation need a total shake up, i dont know why they dont just allow you to claim the cost of a capital expense at the same rate that you pay for it. (i.e. if you buy a pos system on a four year lease then you claim it over 4 years or if you buy it outright at the start you claim the full amount that year.) but simple tax rules would put accountants out of business and we cant have that now.
Scott,
I am not calling for the Government to invest anything. Rather, I am calling for them to implement an investment allowance and a depreciation benefit to encourage businesses to invest. The more we invest in more efficient and competitive businesses the more the economy benefits.
The Government has focused on pensioners which is appropriate and the housing sector which always gets taken care of, unfortunately.
Mark
Here we go again, the government giving money to those that have will simply waste it and then put their hand out again in the near future. Low income earners do not have the economic discipline to get any benefit out of the $1000 they will get. It would have been better off going towards reducing their debt levels or buying food for their kids, not just another cash hand out. I have already heard people talking about blowing the lot on junk.
The old saying of giving people fish and you feed them for a day instead of teaching them how to fish so they can feed themselves forever. When will Mr Rudd ever learn.
Never I suspect as long as people like newsagents and other hard working business owners continue to put their blood, sweat and tears into small business to pay for these hand outs and get nothing in return.
Why is unemployment going up? Because small business is putting people off to stay afloat you idiots.
We give the banks billions to help them out but I’m struggling and I get nothing but more heartache.
that’s what you get when you vote labour.
I can’t resist this, sorry everyone! Anon, it’s spelt Labor not labour.
not in Latvia
Whilst i think this country has become too reliant on the ‘hand outs’ from both sides of politics, i am keeping my fingers crossed that on this occassion the money will filter through into the retail sector quickly.
Unfortunately the retail sector will feel the pain once the $1000 is gone, and go it will based on the demographic the govt has chosen to give it too.
My fear is that the solution is a quick fix and that there may be a severe downturn in retail sales after Christmas.
Those not already preparing for tuff times had better start analysing your business and highlight areas where you can reduce costs.
it is comforting to know that frank lowry is now rated as australias richest man and even more comforting for him to know that this month rents will rise in his shopping centres around australia.
Perish the thought that moguls such as Lowry would even consider a temporary embargo on retail rents until this financial catastrophe subsides
Good point anon.
We are going through the rental negotiation process at the moment. After putting up with a major redevelopment for the past 12 months, whilst paying a notionaly reduced rent, we have been hit with over a 200% increase.
We are in a residential shopping village of now app 18-20 shops located about 1hr feom the Bris CBD. The landlord is trying to get $450psqm + outgoings for the prime positions. He is kidding himself, as the main centre complex with Woolworths, Kmart et al does not get that.
All I see is that we will have vacant shops everywhere. Or if they are filled, it wont be for long. Looks like I will have to give into his demands, and then renogtiate 12 months in.
Dont know if anyone has any other tactics when you know the rentals are to far outside makrket.
Cheers
Peter