Small business to boom under Federal Budget 2015 but further measures needed to strengthen tax system

THE Australian Retailers Association (ARA), representing the majority of Australia retailers, has welcomed moves in the just-released Federal Budget to get spending under control with further reductions in the public service while maintaining incentives for business and consumers.

ARA Executive Director Russell Zimmerman said the ARA commends the Government on making a path to deficit reduction, introducing new measures to support small business and delivering some stimulus to the hip pocket.

“The ARA is pleased to see the $5.5 billion Jobs and Small Business Package, which will help small businesses and the millions of people they employ. This initiative will see a 1.5 percentage point company tax cut for incorporated businesses with turnover under $2 million, and a 5 percent tax discount, up to $1,000 a year, for other businesses as well as further red tape reduction measures. Small businesses will also see an increased instant asset write off of up to $20,000 for items purchased between Budget night and June 30, 2017.

“The ‘Netflix’ tax (which will see popular overseas media streaming services such as Netflix and Apple charged GST on their downloads) has also been welcomed by retailers.

“While this tax is certainly a positive step, we must now ensure GST collection is extended to low value parcels. It should be just as easy to collect GST from Amazon as it is to collect GST from Netflix and Apple, meaning there is little excuse for the Federal and State Government’s not to move on collecting all GST on products under $1000 from overseas. 

“State Governments are losing billions of dollars in GST revenue which could support teachers and emergency services in our communities. Australian retailers are also suffering from an uneven playing field, and this is costing many local jobs.

“The ARA has been leading the campaign to fix the under $1000 GST loophole for goods bought from overseas and is concerned that tonight’s budget did not offer any specific remedy to this issue. We do, however, commend Assistant Treasurer Josh Frydenberg on his leading position and commitment to solving this issue once and for all.

“It seems the Government has learned from the last year and this budget recognises how the digital economy has changed the business landscape in Australia. What we need to see now is every effort made to strengthen our tax system as well as build consumer confidence with a clear long term plan from Government to support consumers and businesses alike,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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