Big Win In $500m Package

Newcastle Herald

Wednesday May 10, 2000

By GEMMA DALEY

THE cost of implementing the new tax system will be offset by a $500million assistance package for small and medium businesses.

Also announced in last night's Budget was ongoing funding for the small business incubator program for initiatives such as Steel River.

The $500million package for small business will be broken into four programs:

* $40million for business skills education.

* $130million for assistance through peak industry bodies.

* $7million for adviser education.

* $320million direct assistance in the form of redeemable certificates.

The Government has already provided $175million through tax deductable software.

Small Business Minister Peter Reith said business costs would fall by between $7billion and $8billion a year and costs to exporters by $3.5billion under the new tax system.

Other small business initiatives in the Budget included:

* A retail grocery industry ombudsman to be set up and funded with $3.6million over the next four years.

* Business Entry Point, which allows small businesses to make compliance transactions electronically, will receive $6.5million this year.

© 2000 Newcastle Herald

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