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SME industry groups welcome business recovery measures in budget

Adrian Flores
Adrian Flores
07 October 2020 2 minute readShare
economy recovery

BUDGET 2020: Industry groups across the small to medium enterprise space have largely welcomed the broad range of measures announced in the federal budget to help businesses recover from the coronavirus crisis.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell highlighted the budget measure aimed at addressing mental health of small businesses.

“Beyond Blue’s NewAccess service offers evidence-based, personal advice on strategies for managing stress,” Ms Carnell said.

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“Crucially, it’s provided by specially trained coaches that have experience in small business. Being able to talk to someone who understands the mental load of running a small business will make a real difference.

“Small business participants will have six one-on-one sessions with their designated coach, who will use evidence-based cognitive behavioural therapy to support them to overcome stress and manage anxiety and depression.”

 

Institute of Public Accountants chief executive Andrew Conway said the federal budget provides the critical support small business needs to build its confidence to stay open, to rebuild and start employing.

“Tonight’s announcements go a step further by making the largest investment and incentive package Australia has ever seen. We applaud the government for providing a fast track for small business to invest and incentive to grow,” Mr Conway said.

“There is much more to be done to get on the true road to recovery. This budget delivers certainty, confidence and clear roadmap for sustainable recovery while delivering on the government’s promise not to introduce any new taxes.”

CPA Australia general manager external affairs Dr Jane Rennie praised the extension of the instant asset write-off to businesses with a turnover of up to $5 billion until June 2022, but added that with the business outlook being highly uncertain, many smaller businesses may not be in a position to take advantage of this measure.

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However, Dr Rennie applauded the introduction of a tax loss carry-back, saying this will provide much-needed cash to previously profitable businesses that are now making losses due to COVID-19.

“This is an idea that has been on the table for a long time and is being used in other economies to help their recovery,” she said.

Australian Chamber of Commerce and Industry chief executive James Pearson noted that entrepreneurs will be energised by the investment incentives announced in the budget.

“For people waiting for the right time to start a new business, or those who have suffered a loss of trade during COVID, three standout budget measures represent a change in fortune,” Mr Pearson said.

“The temporary tax incentives — full expensing and loss carry-back — coupled with the new JobMaker hiring credit will provide opportunities for businesses to invest, to grow and expand, as well as encouraging people with entrepreneurial aspirations to take the leap.

“With more than 99 per cent of businesses able to write off the full value of any eligible asset purchased, coupled with the low cost of borrowing and the support of hiring credits, this is the right time to buy equipment and upgrade productivity, to hire an extra person to lift participation, and to take a risk and aim to achieve more in business.”

SME industry groups welcome business recovery measures in budget
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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