THE local response to the government’s proposed 1.5 per cent small business tax cut from July 1 is muted at worst and lukewarm at best.
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Ink Gallery Nowra owner-manager Mark Cumming said the cut would make little difference in the big scheme.
“If the government wants to make a difference move our tax rate down to 15 per cent,” he said.
“If that happened I know there are business opportunities I could exploit. I’d love to expand, and employ and train more people.
“As it stands, there is no easy capital for small business. There are too many hills to jump.”
Nowra Chemicals owner John Lamont said the government stipulated the cut-off for the drop in tax was companies with a taxable income up to $5 million.
“A large part of the small and medium business population generates more than $5 million each year, so the cut-off means many SMEs will miss out.”
Mr Lamont said leaving out medium-sized businesses would have a negative effect on the whole economy.
“Medium-sized businesses have larger potential to grow and employ more people through investment which could be possible through a tax cut.
“It would be much better for the economy if the cut included businesses with an income up to $20 million, enabling them to take advantage of low interest rates to retool and reinvest, getting ready for the economy when it picks up,” he said.
“This would especially be the case for businesses involved in tourism, manufacturing and transport, which provide the Shoalhaven’s largest areas of employment.”
Mr Lamont said while any tax cuts were welcome, it would be good to have them where a larger impact could be made, both locally and nationally.