000 tax break

Condo’s small businesses welcome Budget benefits

Condobolin business owners and operators have welcomed this year’s Federal Budget measures for small business, saying they hope it will help more local businesses remain profitable.

• Hairdresser Rhonda Shields: “Maybe we can become a little more competitive.” LP

By Lara Pearce

Condobolin business owners and operators have welcomed this year’s Federal Budget measures for small business, saying they hope it will help more local businesses remain profitable.

Joe Hockey’s budget surprised many with a $5.5 billion investment in Australia’s two million small businesses aimed at stimulating the economy from the ground up.

Small businesses will be able to claim a 100% tax deduction on an unlimited number of cars, machinery and other items up to the value of $20,000 for their business.

Individual purchases over the value of $20,000 will also be able to be claimed but will go into a pool and be depreciated at 15% in the first income year and at 30% each year after that.

Condobolin business owners and operators have welcomed this year’s Federal Budget measures for small business, saying they hope it will help more local businesses remain profitable.

• Butcher Daryl Nairn: “Every little bit helps at the moment.” LP

Additionally, from 1 July this year, approximately 780,000 small companies with a turnover of less than $2 million will have their tax lowered from 30% to 28.5%.

Rhonda Shields, who is the owner-operator of RJ’s Hair Salon, says the $20,000 tax concession will be very useful when purchasing new equipment for the salon.

“We are constantly updating, especially with blow dryers and GHDs and new basins and couches,” she said.

“It is nice to see small businesses get this because they normally don’t get much.”

“Often they class a small business as ten employees – well, I don’t class that as a small business. For once, they have thought about the individual owner-operators and those with one or two employees.”

Ms Shields hopes that the measures will enable Condobolin’s businesses to better compete with businesses out of town.

“It is hard to keep people shopping locally,” she said. “With the incentives that they have offered us, we can maybe become a little bit more competitive.”

Butcher Daryl Nairn hopes to use the new tax breaks to write off a new motor for the front cool room at Condo Quality Meats.

“Things are quite tough at the moment,” he said. “Beef prices are going up and up and so that is really cutting back on our profit margins.”

“Every little bit helps.”

Peter Kuhn of the Swiss Watch Centre welcomes the tax breaks.

Condobolin business owners and operators have welcomed this year’s Federal Budget measures for small business, saying they hope it will help more local businesses remain profitable.

• Café operators Sue Fleming and Elaine Petty: “It is great for all the small businesses in Condobolin.” LP

“It is certainly a way of encouraging people to look at their business and look at ways to make it work better for them,” he said.

However, he believes that the Government still needs to do more to encourage people into rural areas such as Condobolin.

“They need to show people in major areas what the benefits are to living out in this area – the nice golf courses, the great weather, all those sorts of things – and perhaps try and attract them and their businesses out here,” he said.

Sue Fleming and Elaine Petty opened a new café, Chips Ahoy, on Bathurst Street earlier this year.

“For where we stand right now, it doesn’t help because we are still getting started and you have to have the cash flows to save the money,” said Ms Fleming, “but it will have a positive impact down the track.”

“It is great for all the small businesses in Condobolin, especially the ones who are struggling to get up and running.”

While Joe Hockey says that the tax concessions will be back dated to Budget night (Tuesday 12 May), the measures are yet to be passed through Parliament and businesses are being warned that the legislation could still be altered before being passed.

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