Small businesses in Australia remain cautiously optimistic about their future. The upcoming federal budget provides an opportunity to reinvigorate and support this sector, which employs 60 per cent of the Australian workforce, to create jobs. This boosts economic activity, which will ultimately create more revenue from taxes for the government.
Andrew Graham, national head of business solutions, RSM Bird Cameron, said, “SMEs remain cautious as they are looking to the new government to provide support and assistance to revitalise this important sector of the economy. There is no better encouragement for job creation than a reduced tax burden on small business. Every budget provides the government an opportunity to take action in this area.
“Most small businesses have cut costs as much as they can and are now looking at ways to grow again. The government should look at ways to stimulate this growth by reducing red tape, offering tax breaks and incentives and working with the States to abolish State-based taxes, such as stamp duty and payroll tax, which were supposed to be addressed when the GST was introduced years ago.
“Unfortunately, it seems the government is focused on a quick return to surplus, which means more budget pain for SMEs whose appetite to continue to invest and grow will potentially be deflated as a result of no significant changes to the tax system for SME’s.
“The government should really address these issues, as a first step to a fairer tax system, which will facilitate the growth of the SME sector, and the Australian economy as a whole.”