Engine room of economy under pressure

Engine room of economy under pressure

The Gold Coast’s once fertile SME landscape is withering amid the downturn, but it would be reckless to assume that the recessionary weeds are entangling all small business owners.

FOLLOWING the Federal Budget’s $500 million allocation to small business incentives and support, many SMEs are looking to capitalise on incentives as part of the $141 million Small Business and General Business Tax Break.

The supplier


DIRECTOR of Document Solutions Australia Alan Thompson, believes the majority of small business operators are unaware of the Federal Government tax break incentive. As a result, his business is yet to see a spike in equipment sales.

In fact, the Konica business solutions dealer has experienced a 30 per cent decrease in sales this year and has readjusted its forecasts.

“The finance companies are pushing us to pass it (tax rebate) onto customers and it’s fine to alert people that there’s a rebate, but there’s not a lot of people that can commit to a straight out purchase,” says Thompson, who sells around 30 units per month in the $300 to $35,000 price range.

“The rebate is a bit ‘smoke and mirrors’ and in our view, the Government is not doing enough to support small business. The incentive has not made people run out and invest in capital equipment.”

Thompson says a lack of awareness and education has not helped SMEs on the Coast.

He cites a personal example where his accountant suggested that now was the time to upgrade the company car in order to receive the 50 per cent rebate prior to the end of December.

But even the car dealer was unaware of the tax breaks.

“One thing about our industry is there’s a lot of equipment out on finance and there are always upgrades,” he says.

“In hindsight, you didn’t have to be too smart to be successful over the last five years, but those that were, are surviving and even creating opportunities in the downturn.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

QLD Premier confirms borders to reopen four days early

QLD Premier confirms borders to reopen four days early

With Queensland health authorities expecting the 80 per cent double...

Cyber weekend sales make November the biggest month in Australian online shopping history

Cyber weekend sales make November the biggest month in Australian online shopping history

November was the biggest month in Australian online shopping histor...

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths Group (ASX: WOW) has today thrown its hat in the ring to...

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

After making its fortunes with suburban malls anchored by blue-chip...