NATIONAL: Fashion businesses with a turnover of less than $2 million look set to benefit from an extra tax break on spending.
Peak industry bodies have applauded the introduction of a 50 per cent tax deduction for spending on capital assets, up from 30 per cent under a previous scheme for small businesses.
This meant owners could claim a deduction on eligible assets purchased from more than $1000 including computers, cars or upgrades to computers.
The Small Business Tax Break had also been extended to assets purchased between December 2008 to the end of this calendar year.
The Australian Retailers Association (ARA) said the incentive would help to encourage growth in the sector, with business investment expected to fall 2.5 per cent this financial year.
"This extra incentive for smaller business to purchase eligible assets will stimulate business investment spend if demand, and thus cash to actually pay for the investment, returns," ARA executive director Richard Evans said.
For more on this, pick up a copy of Ragtrader's May 22 edition.