Geelong businesses are taking the opportunity to invest in their businesses under the Government's recent tax changes said Assistant Treasurer, David Bradbury, the Member for Corio, Richard Marles, and the Member for Corangamite, Darren Cheeseman.
During a meeting with the Geelong Chamber of Commerce, Mr Bradbury said that while our economic fundamentals are strong, Australia's economy is in transition, creating major challenges, such as the high Australian dollar, for many businesses that aren't in the fast lane of the mining boom.
"It's good to hear firsthand from people on the ground in Geelong about the challenges they face and how they are looking for opportunities to grow and prosper," said Mr Bradbury.
"It's so important that we give those businesses some extra assistance through the tax system."
Mr Marles and Mr Cheeseman also recognised the enormous role business plays in Geelong.
"The business community is the engine room of the Geelong economy, employing thousands of workers and contributing to the local community," said Mr Marles.
"Whether it's replacing old equipment or investing in new equipment, this tax relief is helping Geelong's businesses to grow and support the jobs of many Geelong workers."
"The Government has always supported businesses. In the depths of the worst global recession in 75 years, Labor acted decisively to keep the doors of small business open through targeted fiscal stimulus and bank guarantees to secure the flow of credit to small business," said Mr Cheeseman.
"Businesses also need the right infrastructure too and that's why rolling out the National Broadband Network is so important to Geelong. With many parts of Geelong to be connected over the next few years, this is going to be a boon for businesses in Geelong."
"All of these measures have been opposed by Tony Abbott and will be taken away by the Liberal Party if in Government."
Only Labor has a plan for a stronger economy that supports businesses in Geelong and gives them the opportunity to prosper and create jobs.
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Background
The measures introduced to take effect in the 2012-13 financial year include
- Loss carry-back, which means from 1 July 2012 companies will be able to carry back up to $1 million worth of losses to get a refund of tax paid in the previous year. From 1 July 2013, companies will be able to carry back up to $1 million worth of losses against tax paid up to two years earlier.
- The $6,500 instant asset write off allowing businesses to immediately deduct the cost of any new business assets costing less than $6,500, for as many assets as they want to purchase, worth around $1 billion in its first year alone.
- Further simplifying things, businesses will be able to depreciate most other assets in a single pool at a 30 per cent rate (15 per cent in the first year).
- Small businesses will also be able to immediately deduct the first $5,000 of a new or used motor vehicle.
- And from 1 July 2012, many unincorporated small businesses will also get the benefit of the tripling of the tax-free threshold.