SMALL BUSINESS TO BENEFIT FROM GOVERNMENT'S RESPONSE TO HENRY REVIEW

Small businesses are significant beneficiaries of the Australian Government’s response to the Henry Review of taxation.

The ACT Government welcomes the response, which complements its own multi-faceted support for almost 23,000 Territory small businesses that were employing around 100,000 people in March 2009.

The Australian Government measures to benefit small businesses include:

  • A phased cut in the company tax rate to 28 per cent to assist the competitiveness of all Australian industries, with the possibility of more cuts as revenue allows. Small businesses will get a head start, with the 28 per cent rate applying from 2012–13.
  • An instant write-off for assets worth up to $5,000 (currently $1,000). Depreciation for other assets will be simplified, reducing complexity, cutting red tape and providing up-front tax relief.

These measures complement the ACT Government’s support for small business, which includes:

  • the Canberra BusinessPoint business advisory service and the ACT Business License Information Service, both free business advisory services for ACT small firms;
  • the Lighthouse Innovation and Commercialisation Centre, which provides advice and mentoring for small technology-based firms, and the InnovationConnect program which provides early commercialisation support for small and young companies;
  • export development programs for small firms including TradeConnect, the ACT Exporters Network, and the trade mission program delivered in partnership with Austrade;
  • various activities for small firms through vehicles such as the CollabIT program, ScreenACT, and the e-government cluster initiative at NICTA; and
  • roundtables with business in areas including government procurement, planning, education exports, tourism and infrastructure and skills development directed at removing red tape.

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