The small business ombudsman has called for the government to introduce a revenue-contingent loan program to help cash-strapped businesses weather tight cashflows.
Small Business and Family Enterprise Ombudsman Kate Carnell says a HECS-style loan could assist businesses which are still struggling as JobKeeper comes to an end.
“Fundamentally what we’re suggesting is revenue contingent loans,” she told Sky News.
Ms Carnell said industries which are particularly struggling include tourism, hospitality in CBDs, cinemas and event operators.
“We’re talking about those businesses that are still struggling . a loan would be available that they would only pay back when their revenue exceeds a particular amount,” she said.
“As you know with HECS you only pay it back when your wages exceed a particular level."
The revenue contingent loans would assist small businesses which will struggle due to a lack of cash after JobKeeper finishes in March.
"There are lots of businesses that have very real futures, they've just got to get through the next six months or so," she said. “For those businesses, a loan that they on
The Treasurer is counting on pent-up demand carrying Australia’s recovery across the line as JobKeeper ends and borders slam shut. Treasurer Josh Frydenberg estimates that there is now some $200 b
Australian Small Business and Family Enterprise Ombudsman Kate Carnell.
Small Business and Family Enterprise Ombudsman Kate Carnell has weighed in on the debate around the research & development tax incentive (RDTI), calling for a new, industry-specific scheme for businesses focused on software.
In a submission to the Select Committee on Financial Technology and Regulatory Technology in December, Carnell noted the RDTI “in its current form is unsuitable for software development”.
Indeed, businesses that used the incentive for software research have in the past been ordered to repay funds received under the scheme.
Either eligibility requirements for software technology need to be changed, Carnell wrote, or a new software-specific initiative should be introduced.
The Australian Small Business and Family Enterprise Ombudsman
Ombudsman calls for new software-specific R&D Tax Incentive
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called for an industry-specific R&D Tax Incentive, saying the current system is hampering investment and growth in the sector.
In a submission to the Federal Government’s Financial Technology Inquiry, the Ombudsman described the R&D Tax Incentive as unsuitable for software development in its current form.
“The R&D Tax Incentive eligibility requirements need to be changed so that it is clear and simple to claim tax incentives under the existing scheme,” Ms Carnell says.