It’s been interesting seeing how small business retailers have approached the capital investment tax break from the federal government.
Ending in a few days, while there have been some who have made buying decisions based on the opportunity, many have not bought because of the break.
For the tax break to really benefit a small business, the business must be profitable. Improvement in profitability often only comes once they invest in technology like ours. So, there is somewhat of a timing issue from our perspective.
We’d like a future government to assist small business capital investment with a direct grant along the lines of grants to auto manufacturers. Such a grant should have strings, obligations, for the small business retailers – directing spending in business efficiency and profitability improvement.
In our work with small business retailers we can see the economic benefit that could be gained from thoughtful incentives for these businesses. Indeed, many local economies could benefit significantly from a modest investment. We are making submissions to the major parties leading up to the federal election on this topic.