Budget measures to help small businesses have been welcomed by voters. Photo: Louie Douvis
The federal government's small business measures have gone over extremely well with voters according to the Fairfax-Ipsos poll which found 81 per cent back the move to give a 100 per cent instant asset writeoff on all new equipment purchases below $20,000, and the abolition of fringe benefits tax on additional mobile phones, tablets and laptops.
The $5.5 billion package formed the centre-piece of the voter-friendly 2015 budget and is expected to apply to hundreds of thousands of smaller enterprises and sole traders.
But its political reach appears to be even greater with voters across the board rewarding the government for the moves, suggesting the take-up rates will be high and even that the concession is popular as a matter of principle.
While four in five voters applauded the package, only one in five expected to be able to take advantage of it.
The policy's popularity, and the fact that its longer-term budget impact is marginal because the assets would mostly be written off anyway – just more slowly – means it is one of the most politically efficient in the budget.
But it is also possible that many voters misunderstand it on the upside, assessing the benefit to small businesses to be much more generous than it actually is – ie a cash back grant of $20,000. Rather it is a maximum $20,000 per asset deduction on taxable income.
That said, the widespread support reveals a persistent mercantile culture in Australia, with the very idea of enterprise favoured by most voters.
