Fintech lender cheers Budget tax breaks for SMEs
The head of SME lender The Invoice Market, one of Australia's most successful fintechs, has found a few federal budget measures that he said are sure to boost his SME-focused business. The two SME-friendly Budget announcements that will provide a much needed boost for businesses, according to Angus Sedgwick, CEO of the cash flow funding company, are: • moves to reduce the company tax rate for businesses with an annual turnover of up to A$10 million to 26.5 per cent; and • increasing the tax discount to eight per cent for unincorporated businesses with turnover of up to $5 million (capped at $1,000).Sedgwick said the discount increase would be particularly helpful to the segment that largely overlapped his client base. "The majority of TIM's clients, small to medium businesses, are quite positive about their future growth prospects and abilities to expand their businesses, despite some doomsayers and negative sentiment prevalent in the market," he said. "The boost they will receive from easing their tax burden is obviously welcome." All the more to help him fund their businesses' cash flows, often a fine balancing act of matching revenue and expenses. Sedgwick said this exercise remained one of the most important month-to-month issues for these businesses.