Government targets small business with new support package

The federal government says the tax office will work with small business to minimise the impact of the global economic crisis, by introducing 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 on-time payment guarantee will apply to contracts with the government up to $1 million – the federal government currently has more than 65,000 contracts under $1 million and spends about $30 billion on goods and services. 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  about the availability of finance to small business and claimed that 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.