The Council of Small Businesses Organsitaitons Australia (COSBOA) is calling for tonight's Federal Budget to prioritise small businesses, warning that failure to do so would be unfavourable for the Australian economy.
The COSBOA is asking for bold action in the form of tax reform, red tape reduction and greater support for employers strutting with the cost of living and regulatory pressures.
COSBOA CEO Luke Achterstraat said that small businesses are currently running on empty and the reforms are needed to boost Australia’s economy.
“A small business-led recovery is the only way to strengthen the economy, create jobs, and ensure Australia remains globally competitive,” he said.
“If the Federal Budget fails to deliver real support, we risk seeing more closures, higher prices, and a weaker economy for everyone.”
The two areas COSBOA is asking the government to focus on are tax reform and red tape reduction.
The organisation believes that the current tax system is holding small businesses back and calls for reform through a permanent and expanded Instant Asset Write-Off, a review of payroll tax, Reintroducing the Small Business Technology Investment Boost, and Exploration of tax relief for new small businesses.
“The tax system should encourage small businesses to invest, innovate, and hire – yet too often, it does the opposite. A simplified and fairer approach is needed to unlock growth,” Achterstraat said.
According to COSBOA the removal of red tape would remove regulatory complexity and allow businesses more time to focus on customers and growing their operations.
“The cost of compliance is a hidden tax on small businesses, Achterstraat said.
“Every hour spent navigating complex regulations is an hour not spent growing the business, creating jobs, or serving customers. Cutting red tape is an economic necessity.”
Achterstraat said failure to implement these changes will cause greater economic uncertainty, leading to inflation, reduced competition and declining living standards for Australians.
“Australia cannot afford to take small businesses for granted,” Achterstraat said.
“If the government wants a resilient and competitive economy, it must fuel the small business engine – not let it sputter and stall.”
The full COSBOA pre-Budget submission can be found here.
