AUSTRALIAN Small Business and Family Enterprise Ombudsman, Bruce Billson, is urging Federal Parliament to give certainty to small business about two crucial tax breaks announced in last year’s Federal Budget.

“Time is running out with just six weeks until the end of the financial year for small business to claim these deductions, but they still don’t know if they’re allowed to make the claims,” Mr Billson said.

“We’re hearing from confused small businesses who just want certainty. I encourage the Parliament to act swiftly to guarantee these small business tax incentives.”

The two measures relate to the instant asset write-off and a tax-incentive for energy efficiency upgrades. 

The legislation would set the instant asset write-off at $20,000 for businesses with a turnover of up to $10 million, allowing them to deduct up to that amount for eligible assets between July 1, 2023 and June 30, 2024.

Federal Treasurer announced in this week’s budget the scheme would be extended to June 30, 2025.

Without legislation authorising the change, small businesses can only write off $1000 for eligible assets and then apply general depreciation rules.

Similarly, the small business energy incentive worth up to $20,000, announced in April 2023 ahead of last year’s budget, will provide an additional 20 percent depreciation for eligible assets that support electrification and more efficient use of energy by small businesses.

The bonus will be available to businesses with an annual turnover of less than $50 million and is aimed at helping them save on energy bills by making investments like electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps.

“The scheme requires eligible assets or upgrades to be first used or installed ready for use between 1 July 2023 and 30 June 2024, but with the legislation still not passed time is fast running out for small businesses to meet that deadline,” Mr Billson said.

“This uncertainty has highlighted the need for predictability and certainty so a small business can plan in a sure-footed way for important investments that uplift the capacity, the productivity and drive innovation in their business.

“Right now, we need to be energising enterprise. We need to be giving more encouragement for people to turn an idea into an investment and to make that big decision to turn scarce resources into new capability, new equipment, new technology to help with the success of that enterprise and the livelihoods that depend upon it,” he said.

“Having that encouragement to invest in new kit, new plant and equipment, new technology is really an important signal, but what’s needed is the certainty that these tax breaks are real.”

The instant asset write-off is an ongoing incentive with the amount and threshold set each year. The energy incentive is a one-off scheme that ends in six weeks.

Mr Billson said concerned small businesses should seek advice from their accountant, bookkeeper, tax agent or trusted adviser and refer to ato.gov.au for more information.

www.asbfeo.gov.au

ends

By Leon Gettler, Talking Business >>

TECHNOLOGY has transformed the real estate industry – for consumers and agents alike.

Danielle Harmer, the general manager of product for all of Domain’s agent products, who is also the general manager of the Allhomes area of the platform, said it has now become an essential part of the business,

Compared with 20 years ago, property technology (proptech) is now a crucial part of marketing a property as well as keeping agents in touch with vendors.

“Without it, we would be listing houses in newspapers and hope for the best,” Ms Harmer told Talking Business. 

“A ton of investment is going into proptech, into portals, into all sort of technology that services the real estate industry in Australia.”

Danielle Harmer classifies the technology in two ‘buckets’.

One is around marketing and using the technology to reach the largest possible audience.

The other is in servicing real estate agents.

“There’s a lot of complex processes that go into selling and listing a house and there’s ton of technology that real estate agents use that are workflow solutions that help them look good in front of vendors and run what is a pretty complex process when people are selling houses,” Ms Harmer said.

She said she made extensive use of data every day, looking at how much audience Domain has reached, the conversion on listing portals, the number of listings, the days on market.

“There is so much data in our world,” she Ms Harmer said. “I would say I would use it every day, not only on the technology side to drive our roads and what we use our engineering capacity to develop, but also what we talk about with our clients and what we go to market and write about for our consumers. Facts about the property industry, as well as what we go to, our core business, which is our real estate agent industry,” she said.

Ms Harmer said Domain has launched an artificial intelligence tool called Lead Scope which helps agents identify who in their data base might be looking to sell.

“AI and machine learning have been around for a long time. We’re just seeing that space advance very quickly,” she said.

Many agents were now starting to use the basics of ChatGPT when writing their listing copy for selling a house that is being placed on the market.

She said a large proportion of Domain’s workforce were (tech) engineers.

“Domain is a technology business and a significant proportion of Domain Group’s workforce are the incredible engineers that build on the technology that supports our real estate agents, our banking clients and our consumers,” Ms Harmer said.

She said when there are few selling properties, “which is happening right now in the real estate market”, agents have to use the technology to find listings and to win business. When there are a lot properties on the market, agents will use the technology to get in front of a wider audience.

“If I had to give advice to an agency choosing different technology to use, then you’re going for scalability, you’re going for integration, you’re going to compliance and cyber security and something you know will survive the distance in the technology space,” Ms Harmer said.\

www.domain.com.au

www.leongettler.com

Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness.

https://play.acast.com/s/talkingbusiness/talking-business-interview-with-danielle-harmer-from-domain

ends

RMIT UNIVERSITY’s emeritus professor for Public Policy and the Social Economy, David Hayward is perturbed by the current economic clouds that bear a resemblance to recessionary forces in the 1980s and 1990s Australia.

“There are a lot of similarities between the state of the economy in Victoria now and what it was like in the late 1980s, early 1990s,” Dr Hayward said. “Back then Labor was in office and net debt started to climb. 

“The Victorian Treasurer advised that his 1989 state budget was the toughest in living memory, with the state’s finances in a very stressed state.

“Shortly after, the Federal Government pushed interest rates up to over 17 percent as did governments around the world, and Victoria plunged into a deep recession, with unemployment hitting 13 percent. State deficits and debts climbed alarmingly.”

Concerningly, Dr Hayward said, net debt is in a worse state than it was in the tumultuous 1990s.  

“Net debt now is higher in real terms than it was in the depth of the recession back then,” Dr Hayward said.

“If the Reserve Bank’s tightening of monetary policy continues, the Australian economy may be pushed to the brink, while Victoria’s may well be hit especially hard.

“Many people who are still recovering from the economic brunt of COVID – especially those working in or owning restaurants, cafes and tourist accommodation and services, are going to find conditions worsening just when they desperately need it to be getting better,” he warned. 

“Victoria and greater Australia may feel a genuine sense of economic déjà vu.

“Are we on the verge of another bout of painful and unpopular privatisations and other desperate ‘fix-its’ designed to rescue the economy? We may well be about to find out.” 

Dr Hayward’s research interests are the funding of social policy with a focus on the State Governments. He writes regularly for the Age and Sydney Morning Herald and is a frequent expert commentator for the ABC. 

www.rmit.edu.au

ends

Dr David Hayward is Emeritus Professor of Public Policy and the Social Economy at RMIT University. 

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Bruce Billson has welcomed the Australian Government’s announcement of $15 million in funding for free mental health and financial counselling support for small businesses in next week’s Federal Budget.

“For small and family business owners, their business is not just their livelihood but a fundamental part of their life,” Mr Billson said.

“Their identities are interwoven into their business and the stakes are so much higher than just a job. Many people have invested a lifetime, and in some cases their family home, into building up their business, which amplifies the emotional challenges.

“It is vital small business owners have support and know that help is available if they need it. 

“I commend Small Business Minister Julie Collins for the $10.9m in extra funding for the New Access for Small Business Owners program operated by Beyond Blue and the extra $4m for the Small Business Debt Hotline operated by Financial Counselling Australia.”

Mr Billson said Beyond Blue’s New Access for Small Business Owners program offers free one-on-one telehealth sessions with specially trained mental health coaches providing evidence-based advice on strategies for managing stress.

“The success of the New Access for Small Business Owners program is built on it being delivered by coaches who have experience in small business,” Mr Billson said. “Being able to speak to someone who understands the mental load of running a small business makes a big difference.

“The Small Business Debt Helpline provides financial counselling support, particularly for small business owners who have loans secured against the family home and are uncertain about their future.

“For small business owners the stakes can be incredibly high and losing the business often means also losing the home,” Mr Billson said.

Mr Billson said he celebrated the entrepreneurial spirit that drives men and women to start a small business but their resilience is being tested and this support was vital.

“Small and family business owners are literally exhausted,” Mr Billson said. “There has been no reprieve from the rolling natural disasters such as floods, bushfires and drought and the lingering effects from COVID-19 and the various lockdowns and restrictions

“Small businesses are struggling to make rosters work and keep doors open due to labour and skills shortages; grappling with supply troubles that means critical inputs, goods and services are not always available; adjusting to higher inflation then many have experienced; rising interest rates; and on edge about cyber security fears.

“Many small businesses are not making a profit and eating into whatever reserves and personal resources they have to pay their bills and service business debts. Understandably this has taken a toll on the bottom line and wellbeing.”

More information about the New Access for Small Business Owners program is available at: www.beyondblue.org.au/get-support/newaccess-mental-health-coaching/newaccess-for-small-business-owners

More information about the Small Business Debt Helpline is available at https://sbdh.org.au/ or by calling 1800 413 828.

ends