It was only a few weeks ago that small business groups were lamenting the fact that Chris Bowen was the federal government’s fourth Small Business Minister in 15 months. Then, after only one month in the job and as a result of the bizarre leadership “snafu” in March, Chris Bowen was gone and we have our fifth Minister – West Australian, Gary Gray. Perhaps responding to the sector’s dismay of the perceived lack of interest, Minister Gray recently wrote for the Fairfax press, highlighting the Gillard government’s record at supporting small business, including:
- The increases in the instant asset tax write-off threshold and loss carry in 2010 and 2011. (For more information, visit the ATO website.)
- The introduction of a national business name registration scheme
- Continuing to support Business.gov.au and the Small Business Support Line (1800 777 275)
- Establishment of the Australian Business Account to help business manage online transactions
- The operation of the Australian Business Licence and Information Service to assist SME’s meet their compliance responsibilities, and
- The recent appointment of the Small Business Commissioner
A few days earlier, the 2013 MYOB Business Monitor had been released, where SME’s had been asked to nominate initiatives that might swing their vote this September. The top 10 are:
- Policies that significantly simplify the GST/BAS reporting process
- The abolition of the carbon tax
- More Federal Government investment in transport infrastructure in major states and cities
- A reduction in payroll tax
- Increased Federal Government funding for skills, training and apprenticeship programs
- Increased Government funding for innovation, research and development by Australian businesses
- Waiving any penalty interest charges on late tax payments for start-up businesses in their first two years of operation
- Providing free Government-funded training to all small businesses on how to use the internet to enhance and grow their business
- The creation of a single flat tax for personal tax and company tax
- Further cutting Government expenditure to return to surplus faster
At first glance, there doesn’t appear to be a lot of alignment between what the government is doing and what SME’s want. However, there are many competing demands in the public policy space and not all of these issues directly relate to the small business portfolio (and of course, payroll tax is a State tax). But with Australian business conditions at their lowest in 4 years and business confidence lagging, the government should consider a plan for Small Business that provides some stability and confidence, which is relevant to business needs.
