The Federal Government says the tax office will work with small business to minimise the impact of the global economic crisis.
Addressing a business summit in Brisbane today, Prime Minister Kevin Rudd unveiled a package of measures including individual tax management plans, $4 million for advisory centres and guarantees of on-time payments for businesses that deal with government departments.
The government will also streamline the process of small businesses selling goods and services to the public service.
The on-time payment guarantee will apply to contracts with the government up to $1 million.
From December 1 payments will be made to businesses within 30 days otherwise the companies will have the right to charge penalty interest.
Mr Rudd said the tax office’s assistance would be based on individual circumstances.
He said the government also welcomed assurances by banks at the summit about the availability of finance to small business.
“All these measures are about improving small business cash flow,” Mr Rudd said. “The small business support and advice builds on the government’s measures to strengthen the financial system by guaranteeing all deposits from all depositors in Australian banks, building societies and credit unions and for wholesale funding arrangements for Australia’s banks.”
Mr Rudd said that in paying bills on time, the government was leading by example.
He said large businesses should acknowledge this example by also paying their small business suppliers on time.
The Federal Government has more than 65,000 contracts under $1 million and spends about $30 billion on goods and services.
Mr Rudd said small business would also benefit from the extra cash given to consumers and training places announced under the $10.4 billion economic security strategy, as well as the first home owner grant boost.
More than 500 business leaders attended the summit.
AAP
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