Budget delivers a mixed bag for small businesses
SMALL financial institutions like the Warwick Credit Union are expected to benefit from new measures introduced in Tuesday night's budget.
Credit Union CEO Lewis von Stieglitz said the ability to refer to the business as a bank would be a leg-up for the organisation. "It's one of the things we hope will benefit us, as it has implied brand strength,” he said.
"There have also been changes to the Licensing and Productivity Commission about finding ways to make much fairer use of capital, where at the moment we're at a big disadvantage.”
Following the Productivity Commission's final report into Data Availability and Use, the Coalition announced it will introduce an open banking regime.
The Treasury will deliver an independent report on the best approach to this by the end of the year.
Mr von Stieglitz said other measures, namely a 12-month extension to the instant write-off of assets less than $20,000 for small business, would be a major benefit for local employers.
"I think they've struck a good balance considering their finances and I'm looking forward to a nice stable business environment that lets people invest with confidence,” he said.
In contrast, Warwick business owner Brian Tombs said he felt the business community had missed out.
The Ky-Bro Cleaning service owner said restrictive criteria meant many business owners were unable to take advantage of the assets plan.
"I'm disappointed by the budget but not surprised - I think they've concentrated on taxing people instead of reducing their spending,” Mr Tombs said.
"I think investing in infrastructure projects would have been more beneficial for small businesses in the areas.
"Those projects create jobs and have a flow-down effect for small businesses that end up providing goods and services to the large-scale projects.”
Warwick Chamber of Commerce president David Martin said the chamber would have welcomed additional employment incentives.
"I think they've tailored incentives more to metropolitan areas in this budget,” Mr Martin said.
"Increasing the Medicare levy to make sure the NDIS is fully funded was a good move from our perspective, as it should have quite a positive effect and flow-on job opportunities for the Southern Downs.
"Additional tax cuts could potentially generate additional investment and help small businesses employ more people in the community.
"With the financial position they're in now though , the government has needed to make some trade-offs.”