Victorian small business outlook boosted by Federal Budget

VICTORIAN Chamber of Commerce and Industry chief executive Mark Stone said the Federal Budget is likely to boost small business prospects in Victoria.

"Tonight’s Federal Budget delivers practical measures that will help Victorian businesses to become more competitive, increase productivity and create new jobs," Mr Stone said.

"This is a sensible budget leading into a federal election. The biggest employer of people in Victoria, small business, is the significant beneficiary.

"This budget coupled with last week’s State Budget further enhances the opportunity for business in Victoria to employ more people, grow, consider export opportunities and improve competitiveness," he said.

"Initiatives to lower the company tax rate to 25 percent over the next 10 years is in line with what the Victorian Chamber and business has been calling for to boost competitiveness and encourage growth."

Mr Stone welcomed the immediate tax relief available for small and medium businesses, with a cut to the company tax to 27.5 percent from July 1, 2016.
 
"Small businesses with an annual turnover of up to $10 million will now benefit through an extension of the instant asset write off scheme," Mr Stone said. "This will allow small and medium businesses to immediately deduct the value of every asset up to $20,000, providing much needed cash flow to these businesses.

"The new $840 million national Youth Employment Package will help up to 120,000 young people secure jobs. The internship program will provide employers with incentives to give young people real work experience and wage subsidies will be provided to employers who hire young workers under the program.

"This mirrors the Victorian Chamber’s own $1 million program to support internships for Victorian businesses and our call for more support for youth employment," he said.

"The announced $2.4 billion investment in Victorian infrastructure will improve the liveability of the State through investments in Melbourne Metro Rail, Murray Basin Rail, the Monash Freeway, the upgrade of the M80 Ring Road and urban and rural roads.

"A crackdown on multinational tax avoidance through a Diverted Profits Tax will impose a 40 percent penalty rate of tax on multinational corporations seeking to avoid paying Australian taxes by shifting profits offshore. This will provide a much needed level playing field for local businesses.
 
"It is refreshing that the budget has taken a considered approach to revenue and spending with a planned return to a balanced budget by 2020-21."

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au