VECCI commends bipartisan federal support for small business

CHIEF Executive Mark Stone said small business is a priority for VECCI.

Leading up to the 2013 federal election, VECCI, as part of the united chamber movement led by ACCI, ran the “Small Business. Too Big to Ignore” campaign in support of small business.

"The campaign highlighted the fact that there are over 2 million small businesses in Australia, employing more than 7 million Australians, which need government support, including through tax relief, to grow jobs and remain competitive," Mr Stone said.

"Small business policy interests were further reinforced by VECCI during our 2014 state election campaign, “Taking Care of Business”.

"This week’s federal budget, handed down by the Hon. Joe Hockey MP, Treasurer of Australia, acknowledged the importance of small business, with new measures to lower costs, stimulate investment and grow jobs."

Mr Stone said these included:

• The 1.5 percentage point corporate tax cut for small businesses with an annual turnover of less than $2 million.
• The 5 per cent tax discount up to $1,000 a year for unincorporated small businesses with an annual turnover of less than $2 million.
• An expansion in accelerated depreciation rules providing an immediate tax deduction for assets costing less than $20,000, for small businesses with an annual turnover of $2 million or less.
• A new regulatory regime for crowd sourced equity funding to help provide finance for innovative business ideas. 

"These measures were all welcomed by small business," Mr Stone said.

"In his budgetary response, the Hon. Bill Shorten MP, Leader of the Opposition, similarly acknowledged the vital role small business plays in the economy with the announcement of strong plans to reduce small business costs and spur investment."

The ALP’s plans include:

• Cutting the small business corporate tax rate to 25 per cent.
• Committing $500 million to a smart investment fund to invest in early-stage companies.
• Establishing a StartUp Finance partial loan guarantee scheme to provide capital to entrepreneurs.   

The measures to lower business costs and improve access to finance announced in the budget, and those proposed in the ALP’s budget response, are consistent with the recommendations contained in VECCI’s Small Business Taskforce report: “Small business. Big opportunities”.

"The attention both sides of politics are now giving small business is refreshing and overdue," Mr Stone said. "VECCI commends the Federal Government for its initiatives and the Federal Opposition for its alternate plans to support small business.

"We seek an equally strong commitment from governments at all levels to put small business first and do what they can to support small business success."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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