Budget a ‘significant win’ for business: CCI

The Federal budget is a confidence boost for small businesses according to Albany Chamber of Commerce chief executive Russ Clark.

The 2016/17 budget has lowered the small business tax rate to 27.5 per cent for small businesses with a turnover of up to $10 million.

This means businesses with an annual turnover of up to $10 million will now be able to claim the write-off for purchases up to $20,000.

Mr Clark said the budget was a “significant win” for business owners.

“The budget is clearly centred on job creation and innovation to stimulate the economy in the face of the mining downturn,” he said

Mr Clark said the big business winners with these changes will be the farmers, as the budget also increased the small business turnover threshold from from $2 million to $10 million.

“(This) will give generous tax breaks to most farmers,” he said.

“This may see a faster take-up of new technology and innovation (a key focus of the Federal Government’s latest campaign).

“Unfortunately the tax changes do not include capital gains tax that impact families as the parents pass assets to their children, obviously impacting the family succession plans of farmers.”

However Mr Clark raised concerns about the little tax relief for many Great Southern income earners.

“The middle income tax bracket upper limit has been raised to $87,000 from $80,000,” he said.

“Whilst it is forecast to keep 500,000 workers from entering the highest tax bracket at 37 per cent, those who remain in the middle bracket will pay 32.5 per cent tax.

“In the Great Southern the average wage is well below the $87,000 and as such, many of our residents will see little to no tax relief.”