I like the idea of the small business tax change apparently being considered by the federal government and covered in the weekend’s newspapers. It could be particularly useful to newsagents when undertaking considerable investment in the business, such as a shop fit.
I note that some in big business have complained about the fairness of tax help for small business being funded by big business. Hmm. The TV networks, car makers, many major manufacturers, miners and other big businesses are regularly helped by government with funds taxed from small business.
It sounds on the surface like an interesting idea. Do you think it will come to fruition Mark?
Hi All,
There isn’t general support for this proposal through the accounting bodies ( especially CPA ). They see it as only applying to a minority of business ( company’s only ) and has no immediate cashflow effect for struggling businesses.
I must admit most of my newsagency clients are in family trusts or partnerships ( for Capital Gains Tax relief IE 50% tax free up ) and wouldn’t qualify for the loss carry back proposal.
There will shortly be some cash hand outs and reduced tax rates as an offset for teh Carbon Tax. This may prompt some discretionary spending – ” Spoil yourself with a magazine & a coffee – Me time ” approach
I also anticipate that when the tax changes come in on July 1st a lot of lower income folk will get more money in their pocket every week, and a lot will be frittered away in consumables like Damian mentions. It will be very interesting to see if it is noticable. I think Julia means people to pay ther electricity bills with this money, but let’s wait and see.