Federal budget could be good for small business
The 2012 Federal Budget has been announced and contains some good news for the large number of ...
The 2012 Federal Budget has been announced and contains some good news for the large number of small-to-medium businesses that flourish across Australia.
In particular, a number of tax concessions have been put in place that could help to ease some of the financial pressures placed on SMEs outside of the resources and mining sectors.
A new 'loss carry-back' scheme will allow firms to offset a loss of up to $1 million in the current financial year against the amounts of tax paid in previous periods.
Federal treasurer Wayne Swan asserted: "We estimate this will help around 110,000 small businesses over the first four years, providing cash flow when it is needed most, rather than down the track."
Mr Swan continued by explaining that each enterprise could claim up to $300,000 against previous losses, helping to drive up investment and improve productivity by allowing SMEs to operate even after a tough year.
"This will support businesses when they need it, providing an injection of funds to invest in new ideas, equipment and markets," said Mr Swan
The availability of additional funds could help some firms keep hold over their market position - keeping their commercial property up to standard and delivering services to client they may not otherwise be able to provide.