BATHURST businesses enjoyed an end of financial year boost in sales thanks to a Federal Government budget announcement in May.
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From May 12, businesses with a turnover of less than $2 million were told they could immediately claim a tax deduction for each and every item purchased up to $20,000.
Sid Newham Rural Supplies owner Johnno Seaman said business had boomed at his store over the past six weeks.
“I think it’s one of the best government initiatives for the rural sector,” he said.
“It definitely did stimulate a lot of activity for businesses.”
Mr Seaman said sales of large chainsaws, crushers, boom sprays and welders had been very strong since the budget announcement.
“It was a win-win situation for farmers and businesses,” he said.
“It’s one of the biggest growths we’ve had in a long time ... for small businesses it has been a great incentive.”
With good cattle prices at the saleyards recently, Mr Seaman said farmers had more funds available to take advantage of the stimulus announcement.
Harvey Norman Bathurst electrical franchisee Mark MacMurray said he had also seen an increase in sales, particularly to the city’s accommodation providers.
Among the hot items are semi-commercial coffee machines, electric blankets, vacuum cleaners, kettles and toasters.
“They’re everyday items, but they [businesses] are buying in quantities,” he said.
Mr MacMurray said a hotelier would normally replace these items over time due to the cost, but the tax incentive had encouraged them to replace all items at the same time.
He added that the store had also seen a huge increase in computer sales since the small business incentive was announced.
Having worked in retail for the past 17 years, he said there had been some previous federal government incentives that had boosted business, “but there’s been nothing like this [latest stimulus]”.
He said sales had been affected in the past by the introduction of the GST, along with former prime minister Kevin Rudd’s stimulus payments to individuals during the global financial crisis.
“There’s no doubt the incentives for small businesses have improved greatly,” Mr MacMurray said.