Will a change of government be good for small businesses?
Attending the COSBOA National Small Business Summit earlier this month, I had the opportunity to hear both major political parties address small business owners and supporters.
The opposition leader Tony Abbott used his trademark ‘personality’ to get traction with the audience and on the other hand the Deputy Prime Minister, Wayne Swann, presented with his usual ‘absence of personality’, leaving us staring into our wine glasses.
What it left me with was the question, will either party really deliver for our 1.93 million small businesses and put their issues on the agenda?
The main issue that needs to be addressed is decreasing the amount of red tape that small business is forced to deal with on an everyday basis. For instance, reducing the company tax rate by one per cent is not cutting red tape nor does it really benefit small business.
As an accountant and strategic advisor to small businesses I am perplexed and frustrated by the fact that small businesses have to deal with the same regulations that are designed for big businesses that have more resources, that instead of simplifying tax regulations, they have become increasingly more complex and that there is little consultation with small business about the impact of new policies and reforms.
We need a simplified taxation and compliance system as outlined in many of the 100 recommendations put forward in the Henry Review that were put on the ‘back-burner’.
For instance:
- Remove payroll taxes
- Remove non-value added taxes, like stamp duty
- Configure taxes and transfers to support productivity, participation and growth
- Streamline small business capital gains tax rules.
We need a consolidation of compliance bodies so there is a single, national body instead of multiple state and federal ones.
The definition of a small business being one that employs less than 20 employees and turns over up to $2 million needs to be redefined so that this threshold is up to $10 million.
Australia needs small business to remain viable. Small businesses generate over a quarter of our GDP, make up 39 per cent of all exports and employ around half of the Australian workforce. It is important that we invest more to ensure that they continue to thrive so that our economy also thrives.
Regardless of which party is elected into government, it will remain to be seen what they will do to address Australian small businesses.
You mention “The definition of a small business being one that employs less than 20 employees and turns over up to $2 million needs to be redefined so that this threshold is up to $10 million.”
I say spare a thought for very small businesses of 3 employees and $0.5m t/o where all human resources are wholly engaged in sales or production. Marketing, Accounting, Planning all need to be done at midnight by the owner.
Yet these guys still have onerous workcover based on other industry failures and poor management of premiums and payouts.
These guys in service organisations also have the difficulty of managing the PAYE/GST burden where there are few input tax credits. It’s tough going and nobody in parliament understands or cares – they are about offering a small target to non small business voters.
Well, all said and done….at the end the fact remains that if money is circulated in the system in form of funding in different sectors of the Business industry in australia, the outcome will be that of a positive one to some degree (great or small), but if funding is not put into effect and money is infact taken out of the business sector, industrialisation, and other critical National areas such as Medical System, Education System, Infrastructure etc….the definite outcome of that will be a sure shot Surplus in treasury (Yeah Yeah Australians) but negative growth of the country. Now, i ask you all learned people out there, which Government do you think will do so and not just rely on Australia’s import/export market? Australia is no a self-sustained nation, it does not have a big manufacturing sector, and does not rack up as a big consumer market either. In such circumstances, what areas do you think the emphasis needs to be put on to ensure we prosper and see a better future for not ONLY Small Businesses but also other areas of Australia’s economy? I think people need to stop looking at politicians and there way of presentations, and stop judging on the basis of their personalities. but what needs to be looked at very seriously is which party is taking us in the right direction. I know where my vote is going….already!!!