Engine room of economy under pressure

Written on the 5 June 2009

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.”


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter