As the dust settles on the polls and Anthony Albanese is sworn in as the 31st prime minister of Australia, small business leaders weigh in on what a Labor win means for the sector.
The 2022 election win marks the first time a Labor government has been in power since 2013. Little wonder many small businesses are predicting the change in government may bring a change in fortune for the sector.
Mark Khabe co-founder of Prime BPM suggests a Labor government may prioritise many long-standing issues of small business owners.
“It’s encouraging to see that the Labor party has recognised the pivotal role that the sector plays and have pledged their support to help SMBs bounce back from the disruptions of the last two years. Greater government support will strengthen the sector’s contributions to employment creation and economic growth. However, small businesses will need to see these policies play out in practice,” Khabe said.
Support for small business digital transformation
Khabe says the Labor party has promised to deliver on a number of small business issues and suggests ongoing support for digital transformation is a must for the sector.
“The post-pandemic world is digital, therefore stronger uptake of digital technologies will help SMBs drive more profit, expand their footprints and hire remote, borderless teams from any part of the world. The Liberal government had laid out an ambitious vision of making Australia a top 10 data and digital economy by 2030. The Labor government needs to now live up to this promise,” Khabe suggested.
“Support for digital technology adoption needs to be at the forefront with regards to Labor’s policies. The post-pandemic world is digital, as such a stronger uptake of digital technologies will be key to helping SMBs grow, transcend borders for more opportunities and hire relevant talent from any part of the world. It’s imperative that the Albanese government invests in Australia’s digital future. A stronger digital economy will help small businesses to operate on a level playing field both locally and internationally,” added Khabe.
Chris Dahl director of sales and growth at Pin Payments agrees greater support for Australia’s small business community is essential and he suggests business owners will not stand for empty promises.
“The business community is tired of false promises and a general lack of support, particularly after two years of lockdowns and the pandemic. We need to see a roadmap by the Labor government which outlines exactly how they will use funds to get every Australian SMB online, so these businesses are not left behind. Digital is the future of all businesses, so investment in this should be a key issue for Labor, in order to assist with widespread economic recovery and prosperity,” Dahl said.
Lars Leber, Vice President and Country Manager of Intuit QuickBooks Australia said he was delighted to see Labor would support important regulatory reforms that had been announced in this year’s budget such as the Technology Investment Boost and NewAccess mental health coaching.
“We encourage swift legislation of the Technology Investment Boost and the previously legislated Instant Asset Write Off by this government,” Leber said.
“The adoption of digital technologies has been critical in helping many Australian small businesses survive and succeed during the pandemic. We urge the incoming government to apply a relentless focus in accelerating this crucial shift to digital. The other main priority should be maintaining focus on reducing the regulatory burden to help small business owners feel more confident as they plan for the future.”
End cash flow issues
Dahl says solving small business owners’ ongoing issues with late payments and cash flow should also be a priority for the newly formed Labor government.
“We’re pleased to see that cash-flow issues are being addressed by the Labor party, which is a long-standing issue for SMBs,” adds Dahl. “Likewise, Labor has committed to reducing the time small businesses spend doing taxes and cutting paperwork and regulatory red tape. These are all positive initiatives, which we hope will play out in practice.
“Secondly, Labor has promised to improve SMEs negotiation powers with larger partners by making unfair contract terms illegal. This is a huge step to combatting business inequality and injustice, to protect small businesses from corruption.
“Likewise, the Labor party is promising to “Reduce small business transaction costs at the point of payment with a clear timeline for implementing least cost routing or similar. Small businesses are disproportionately impacted by higher transaction fees that eat into profits – around $804 million a year.” This is a welcome change for small business owners. Least cost routing allows a business the choice to route online payments in a way that benefits them and their customers, which will hopefully encourage greater adoption of online payments for SMBs,” Dahl concluded
The jobs and skills need for small business success
When it comes to jobs and skills, Khabe is hopeful Labor’s policies will go some way towards ending skills shortages. However, he suggests the training initiatives and funds should not be exclusive to the Australia-based workforce.
“Many local businesses like ours rely heavily on talent overseas. Our strategy is borderless, so we have remote staff all over the world working as per Australian hours and an Australian head office. As digital transformation changes the way business operates, the government should not limit business and staff incentives to Australia. The Labor government should support the digitalisation of businesses and understand that many SMBs now employ remote worldwide staff. The small business and digital policies should reflect that, as this will ultimately help Australia-based businesses to expand their global footprints and benefit the national economy,” Khabe said.
Dhal agreed that Labor’s priority on funding for skills training would set the sector in good stead, he was particularly hopefully of the plan outlined for increasing trade skills across the nation.
“It’s encouraging to see that the Labor party has placed such emphasis on increasing jobs and building skills through the 465,000 fee-free TAFE places for Australian students studying in industries with a skills shortage,” Dahl said
“Small businesses may see a significant benefit from this, as upskilling employees will become easier and likewise talent will have access to skills programs through TAFE to upskill. The 20,000 extra university places over 2022 and 2023 will also help fill the gap for industries suffering from skill shortages, which will enhance the small business community immensely. While greater investment in digital skills based trades would have been beneficial for SMBs, it is encouraging that the Labor party is, at the very least, addressing jobs and skills in their policies.”
Tax benefits for all
Khabe believes the tax cuts legislated by Labor would be of benefit to the majority of the community.
“The legislated tax cuts by the Labor party stand to benefit everyone with incomes above $45,000. Reduced tax burdens and decreased administrative work for taxation and compliance are a key focus area for SMBs, therefore policies supporting this will enable SMBs to free up administrative capacity and do more value-adding work. Reduced taxes are ultimately a benefit for SMBs, so we hope to see this promise play out in practice,” he said.
Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.
Now read this
The voters have spoken: Now Labor has to prove they made the right decision
Trending
Weekly business news and insights, delivered to your inbox.