Printing Industries says that while the small business tax break in this week’s federal budget is perfectly timed for PacPrint and infrastructure projects will provide indirect benefits, growth rates in the printing and associated industries are likely to remain below trend for the next two years.
Hagop Tchamkertenian, national manager for policy and government affairs welcomed some of the budget initiatives and encouraged printing companies to take advantage of the newly announced measures. However, he adds it may take at least until 2011-12 before economic prosperity returns and the printing industry starts to surge ahead once again.Tchamkertenian says, “The increase of the small business tax break to 50 per cent is welcome and should assist those printing companies who are looking at updating their technology.”
The Association adds that it will encourage the government to extend the tax break so that it also covers used equipment and standalone items of software.
Tchamkertenian continues, “Such an extension will benefit local industry as more of the money will stay in Australia and will provide cost and cash-flow benefit to those printing businesses who may not be able to afford to purchase new plant and equipment.”
Tchamkertenian also welcomed changes to the R&D tax concession saying the transition to tax credit arrangements from 1 July 2010 should benefit business generally and especially small businesses and thus help increase overall investment in innovation.
He concludes, “Despite the doom and gloom the budget is forecasting that economic recovery will commence in 2010-11 and economic prosperity will return from 2011-12 onwards.”
