Home topics finance finance-cash-flow Cashflow News Cashflow Small business and the Budget: how it will affect you Jessica Stanic May 13, 2009 Treasurer Wayne Swan announced in his Budget speech last night that small businesses are the “backbone of the Australian economy” and as such has implemented a number of measures in the Budget designed to support small business. Council of Small Business of Australia (COSBOA) CEO Jaye Radisich supports the latest measures which include a small business tax break, a support line, an online program, R&D tax concession along with infrastructure and national building investments. Ms Radisich said that it is “good to see that small business is clearly back on the agenda at the Federal level” and that overall, “small business are winners in the budget.” Among the measures implemented for small business include: Small business tax break – The Government have increased the Small Business and General Business Tax Break (Investment Allowance) from 30 percent to 50 percent, and extended the deadline to December 31, 2009. The 50 per cent deduction will be available on new capital worth $1,000 or more, such as vehicles, purchased between December 13, 2008, and December 31 this year. The eligible items must be installed and ready for use by December 31, 2010. Ms Radisich welcomed the measure believing it is an “attractive proposition” for small business and will give them extra time to make purchasing decisions on capital items over $1000. She has suggested that small businesses should try and buy