Local IT industry hopeful on Budget

 

The Federal Budget has met with approval from local industry players who hope organisations and consumers may spend more on IT products and services .

The Federal Budget has met with approval from local industry players who hope organisations and consumers may spend more on IT products and services.

Adam Steinhardt, managing director at independent Apple computer retailer Next Byte, said his "general feeling" was the new Budget would probably help the local industry.

"The tax cuts are outstanding," he said. "I think people will be a bit more excited about buying computers. The tax cuts will certainly help IT -- certainly the retail market."

Steinhardt said the tax cuts were large enough to encourage aspirational purchases that previously consumers were putting off. More people would feel they could afford luxury consumer items such as iPods and other digital equipment.

The Budget proposals might also stop the Australian economy moving backwards, he added.

Andrew Rayment, managing director at integrator Ethan SI, said the increased budgets for various government departments, some of which were clients of Ethan SI, meant IT spend might increase.

"But there wasn't anything ground-breaking," Rayment said. "Not too much of huge interest for us."

Peter Masters, marketing director at Express Data, said the budget would be good for business. Rising commodity prices could boost income but margins would stay the same.

"With 80 percent of Australian's now paying less tax, there will be more money around," he said.

Economists had predicted the Budget would have little effect on the dollar. But Masters said it might soften by 25 percent over 12 months and businesses should take that into account, Masters said.

Australian taxpayers from 1 July are to get tax cuts totalling $21.7 billion over the next four years. The new tax cuts augment those announced in last year's Federal Budget.

Federal treasurer Peter Costello has claimed the tax cuts will boost disposable incomes. However, commentators have said that most taxpayers will be only $6 better off every week.

The thresholds for the top two marginal personal income tax rates have also been raised.

For businesses, the Federal Government has decided to abolish the three percent tariff on business inputs with no domestic substitutes imported under the tariff scheme from 11 May. Costello has said the tariff may eventually be completely removed.

"Up until now, relief from the three per cent tariff was provided as free trade agreements were negotiated. This meant imports from the US, Thailand and Singapore were not subject to the tariff," a statement from the Treasurer's office said.

"Removing the tariff for all imports will reduce business costs and improve the international competitiveness of Australian business."

The government is also reintroducing the foreign income exemption for temporary residents and reforming capital gains taxes for non-residents. Foreign loss and foreign tax credit quarantining rules are also being abolished.

"These changes will assist businesses of all sizes. Australia’s SMBs are more and more globally oriented," the Treasurer's office said.

The government is also moving to treat business expenditures more systematically under the tax laws. Changes to income tax assessment are expected to increase the deductions available for businesses.

For example, deductions for capital expenditures incurred by businesses that are carried on for a taxable purpose will now be permitted.

Also, the Australian Competition and Consumer Commission (ACCC) is getting another $20 million over the next four years to work on trade practices amendments, as recommended by the Dawson review.


 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  21%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1461

Vote