EDITORIAL - Last year’s Federal Budget was a patch-up that confused and divided, judging by the number of measures that failed to get through the Senate.
This year’s Budget is different. It is a more blatant political exercise, designed to stimulate an important part of our economy (small business) and prepare the Coalition for an election mid next year. It will be difficult for the Opposition to challenge the Small Business components of the Budget because many of the ingredients have come from their own policy book.
As the mining sector loses its gloss, the government is looking to small business to kick-start a revival and create new opportunities in the Australian economy. As Joe Hockey said – “Our future growth will come from growing small business into big business.”
The tax incentives for Small Business are great. They have been described as “unprecedented in scale and generosity“. But when businesses are struggling to make the profits that are needed to make those tax incentives relevant, it is consumer confidence and a lift in retail sales that really count. That may happen, depending on the public response to the budget measures - time will tell. We traders can rightly feel good about the budget measures and let's hope the broader public feel the same.