The Federal Budget 2017-2018 is looming and will be revealed 7.30pm (AEST) on Tuesday 9 May 2017. In the meantime, many small business owners are left wondering what the outcome will mean for them?
According to new research from MYOB, almost half of Australian small businesses aren’t confident the Budget will work in their favour.
- Small business owners were asked if they trust the Federal Government to deliver the ideal outcome for them and 35 per cent answered ‘no’.
- MYOB’s study also discovered that small businesses believed a permanent $20,000 instant tax write-off initiative for new assets to be the most crucial (60%)
- Followed by reducing company tax rate (48%)
- And subsidies for employing young Australians (42%)
- However small businesses are mainly looking for cash flow support from the Government with a focus on instant tax write-offs
Andrew Conway, CEO of the Institute of Public Accountants, believes that the $20,000 instant asset write-off scheme has immensely helped small businesses with their cash flow. He says, “We are hopeful that the $20K will be extended beyond 30th June; otherwise it will revert to $1,000 which will have a negative impact on the broader economy as the incentive for small businesses to reinvest in their future will be taken away; restricting potential growth, employment and prosperity.”
the $20,000 instant tax write-off initiative for new assets is crucial
Tim Reed, CEO of MYOB has proposed that the Government seriously consider the effects of not making this initiative permanent, which would undermine everything that small businesses have done in this space. “Last year, Treasurer Scott Morrison said of small business: “they are the hope of the side”. This year’s Budget presents an opportunity for the Government to back small business and cement their future in Australia,” he adds.
Late payments have been another ongoing issue that many small businesses have dealt with. Conway says he feels that the previous two Federal Budgets have been kind to the small business sector but believes there is much more that can be done.
He adds, “One area in particular is the timely payment to small businesses whose cash flow is often held to ransom by the failure of big businesses and government departments to pay small business invoiced in a timely manner. It is believed that millions of dollars of Government revenue is potentially slipping through the cracks due to a cash-fed black economy, so it is only right that the Government acts accordingly.”
“small business counts” – carnell
Kate Carnell is the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and has suggested key policies for the Budget, designed to boost small business growth, create more jobs and endorse more impartial relationships with banks and bigger businesses. “We want the Australian Government to consider these measures as part of its Budget on 9th May because a healthy small business sector is a prerequisite for a growing economy with high employment opportunities,” she explains.
Carnell emphasises that the Government needs to formulate a range of policies that will boost small business, which makes up for 33 per cent of Australia’s GDP and employs about 50 per cent of the workforce. She adds, “In every sense, small business counts.”
Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.