Small businesses in the Torquay region are getting a boost from the Gillard Government through recent tax relief changes said Assistant Treasurer David Bradbury and the Member for Corangamite, Darren Cheeseman.
During a visit to the iconic Third Wave Café in Torquay, Mr Bradbury said that small business thrives in Australia because of the inherent Australian desire to 'have a go'.
"The Gillard Government is supporting the more than 2.1 million Australian small businesses," said Mr Bradbury.
"Through these important tax cuts, we're seeing more and more small businesses taking the opportunity to invest in and grow their businesses."
Mr Cheeseman said small businesses played a huge role in Torquay, employing hundreds of people and contributing to the local community.
"Our small business owners work hard and deserve this extra support," said Mr Cheeseman.
"These tax cuts will make it easier for them to invest in new equipment or replace old equipment. For example, a café looking to buy a range of new equipment would see its cash flow more than $5,300 better off under the Gillard Government's reforms."
"Tony Abbott is promising to put all of these measures on the chopping block to fund his $70 billion black hole."
"Only Labor has a plan to support small businesses."
Attachment
Background
Cafe cameo
This example shows how an incorporated café that makes the following investments in the 2012-13 year would benefit.
- one second-hand delivery van for $10,000;
- a fridge for $6,000;
- a coffee machine for $5,000; and
- couches for $5,000.
For the second-hand delivery van, the café can claim $5,000 plus 15 per cent of the remaining value ($750). For the 2012-13 income year, this means a total deduction for the motor vehicle of $5,750.
Under the small business instant asset write-off, the café can instantly write off all of the other assets, as they all cost less than the instant asset write‑off threshold of $6,500. This totals $16,000.
For the 2012-13 income year, this means the café will claim a total deduction of $21,750 resulting in a cash flow benefit of $5,355 more than under the current arrangements (just in the first year).