MEDIA RELEASE
Call for Federal Government to introduce
‘Capital Gains Tax Holiday’ for new businesses
Sydney: 16 April 2009 - For immediate release: The Federal Government’s $42 billion ‘Nation
Building and Jobs Plan’ has missed a great opportunity to help the Australian economy by
ignoring the needs of people starting-up in business.
“Australia really needs better incentives for business start-ups. New businesses underpin the
future prosperity of our country. That’s why we are calling on the Federal Government to
implement a ‘Capital Gains Tax Holiday’ for any business started in the next 18 months,” said
Matthew Abrahams, Managing Director of Business Switch, a company which helps Australians
start-up in business.
“In other words, any business established in 2009 or 2010 would attract no tax whatsoever on the
capital gains made when it is ultimately sold. We believe such a measure would encourage new
business creation at no additional cost to the Federal budget”.
With
rising unemployment and fewer jobs, more Australians
will consider starting a business
over the next few years. A capital gains tax holiday is also likely to attract seasoned entrepreneurs
to focus on their next idea and turn it into a new business.
“Every new business delivers a fast-acting economic boost to Australia. In addition to hiring
people, most new businesses also pay regulatory fees, buy a stack of equipment, acquire furniture
and rent office space. They also pay GST and taxes on profits. So the benefits of each start up
flow widely and quickly throughout the economy.
… 2
“If the ‘Capital Gains Tax Holiday’ encourages just 1,000 extra Australians to start a new
business, that’s 1,000 fewer unemployed and 1,000 companies – no matter how small – which
will employ other Australians either directly or indirectly.
“The flow-on benefits to our economy are simply too important to ignore any longer. We
encourage the Federal Government to consider this initiative
as a matter of priority,” Matthew
Abrahams said.
End
Business Switch is the first business of its type in Australia. Launched this year, Business
Switch’s mission is to help new business founders ‘set up their business for success in just
two weeks’ by providing comprehensive infrastructure and advisory services in simple,
transparent programs. Programs include full company registration, logo design, producing
business cards and stationery, website design, web registration and hosting, set-up of email
addresses, office space, IT and technology support, plus finance, insurance and marketing
advice.
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