Federal Opposition leader Malcolm Turnbull has unveiled a six-point plan to help small businesses through the downturn, including a proposal that would allow SMEs to recoup up to $100,000 from their previous tax payments.
The Turnbull proposal is similar to measures introduced by US President Barack Obama. SMEs are able to offset operating losses incurred during the downturn by claiming back some of the taxes they have paid over the previous three years.
This would be open to businesses with at least one employee that have a “solid operating history” but are “facing large operating losses in 2009 and/or 2010”. Refunds would be capped at $100,000 per firm over the two years.
Other measures put forward by Turnbull include:
“The plan includes both proposals that offer a direct financial lifeline to struggling firms in difficult times, and moves to get government out of the way of the entrepreneurial sector of the economy,” Turnbull said yesterday.
Turnbull’s tax carryback proposal is likely to receive support from business groups, particularly the Australian Chamber of Commerce and Industry, which made a similar suggestion in its pre-budget submission.
The chief executive of the Council of Small Business Organisations of Australia, Jaye Radisich, also gave qualified support for the tax proposal, although she has expressed some concern about changes to the superannuation system.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
