It’s shaping up as a big year for small business in Australia. We kicked off with the inaugural Australian Small Business Commissioner opening his doors for business. Former Victorian Small Business Commissioner Mark Brennan has taken on the role of representing the interests and concerns of small business to the Gillard Government. It’s an important appointment as key statistics recently released by the federal government show the critical role small business continues to play in the Australian economy.
Small business (defined as less than 20 employees) currently makes up nearly half of the nation’s private sector employment and contributes about one-third of the value of the private sector.
That’s some serious political clout the Small Business Commissioner has to work with! It will be interesting to see how Mr Brennan approaches the role and whether he can increase the influence and profile of the small business sector in government policy setting. I suspect one of the first items on his agenda will be monitoring the Productivity Commission’s enquiry into “Regulator Engagement with Small Business,” or the government red-tape enquiry, as it’s more commonly known. The Terms of Reference have been issued by government and a discussion paper will be released in February with a reporting date of September this year.
We know red-tape burden is a critical issue for many small businesses. A recent NSW Business Chamber survey found that the cost and time spent on compliance had risen for many businesses in the last two years. And more than half said it had impacted their ability to grow their business. And it probably won’t surprise you to learn that the surveyed businesses placed the Australian Tax Office at the top of the list of red-tape offenders, with federal agencies Fair Work Australia and Centrelink in the top 5.
But without doubt, the major event in government circles this year will be the federal election. Small business seems to have fallen off the political radar in recent years, which is surprising given its contribution to employment and wealth creation. But does that matter? Do we need a separate small business policy from the major parties? The Canberra Times recently speculated on which issues may decide the election and came up with a list of ten.
And while small business wasn’t mentioned, there are plenty of issues relevant to the sector including economic management, industrial relations, carbon pricing, infrastructure and the cost of living, on voters’ radar.
It will be fascinating, with business confidence still sluggish in the post-GFC climate, to see how the parties’ approach small business this election year.
What are your thoughts? Will the major parties’ attitudes to small business influence your vote this year? Or are you simply looking for good economic management to provide the foundation for a successful business?
