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bwired gets Involved in Question Time for BRW

Sam Saltis, Managing Director of bwired recently got involved in Question Time with the BRW.

In the latest issue he poses an interesting question for Craig Emerson, Minister for Small Business, Independent Contractors and the Service Economy:

Q: While businesses turning over $2 million or less have benefited from stimulus incentives including the reduction of PAYG tax for 2009-10, we see little incentive for growing businesses turning over more than that to increase staffing. As a growing business, we could offer more employment if the risk and associated costs were less prohibitive. How will the government support businesses that started small, and continue to grow?
-Sam Saltis, bwired

A: The federal budget offers incentives for small and large businesses with annual turnover of more than $2 million. As a growing business trading in innovation through technology, this business can apply for the new 45 per cent research and development tax credit from 2010-11. The credit, which replaces the existing existing R&D concession, is available to companies with turnover of less than $20 million. SME's will receive a tax refund of 45 per cent of their R&D expenditure, regardless of whether they are in a tax profit or loss situation. For most SME's, this new tax credit doubles the incentive to undertake R&D.

In the interim, the cap on eligible R&D that can be claimed under the existing R&D tax offset for firms in tax loss will be raised from $1 million to $2 million for 2009-10. Firms with a turnover of less than $5 million are eligible.

For businesses with a turnover of $2 million or more, the small business/general business tax break provides an extra 30 per cent deduction on eligible plant and equipment purchased December 13, 2008 to June 30, 2009 that is installed ready for use by June 30, 2010. For subsequent purchases made up to the end of 2009 and installed by the end of 2010, the tax break is 10 per cent.
-Craig Emerson, Minister for Small Business, Independent Contractors and the Service Economy

Click here to visit the official article, or go to for more interesting Q&A.