The Council of Small Business of Australia is promoting the
concept of an investment allowance and the timing could be just right for some
traders at QVM.
Governments use investment allowances to stimulate economic
activity through an additional tax deduction that is available for the purchase
of income- producing assets including plant and equipment. Traders involved in
the possible re-vamping of H & I sheds or the opportunity to set up permanent
stalls in the top end could be ideal targets for the economic benefits of this
type of allowance.
An investment allowance was introduced by the previous Labor
Government after the Global Financial Crisis. Essentially it allowed businesses
to claim an immediate tax deduction for 50% of the cost of the asset instead of
just spreading it over the life of the investment, say 5 years. At the time it
was considered a very worthwhile initiative as the government got on the front
foot to tackle the impact of the GFC and stimulate business activity.
As Australia moves away from its dependence on natural resources
the opportunity to stimulate other industry categories would seem to make a lot
of sense. Let's hope the Council of Small Business is successful with this one.
