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.