AUSTRALIAN small business owners have reacted positively to key measures introduced in the recent Federal Budget, new research from MYOB reveals.

Over half (56 percent) of small businesses believe that lowering the company tax rate to 27.5 percent for businesses with up to $10 million in revenue will  have a positive impact.

The latest SME Snapshot also found that SMEs support increasing the instant tax write-off eligibility to include businesses generating up to $10 million in revenue. The survey found that 50 percent of small businesses believe this eligibility increase would benefit their business.

“While this year’s budget has come under fire for favouring big business, the results show that the majority of Australian SMEs believe that lowering the company tax rate is an important reform and will encourage growth.  For every dollar a small business spends with a big business, big businesses spend $2 with small businesses – it is an ecosystem and we need to make sure all parts are healthy,” said Tim Reed, CEO of MYOB.

The survey also revealed that 72 per cent of SMEs agreed growth would be encouraged through widening the definition of a small business. Tim Reed believes this move will result in SMEs feeling less restrained when it comes to planning for business success.

“It’s encouraging to see these barriers to growth removed. The previous system discouraged SMEs to grow beyond $2 million in revenue because they lose the benefits of being a small business. Small businesses often rely on bigger businesses as customers – without stimulating investment in bigger business, small businesses won’t receive the positive flow on effect,” said Mr Reed.

In this month’s survey, small businesses were also asked if they were in favour of the reduction in GST codes from seven to three as part of the government’s BAS simplification trial. Not surprisingly, almost half of the businesses surveyed (47 per cent) were in favour of the new measure.

Youth Jobs PaTH – Prepare, Trial, Hire

SMEs were also asked how likely they would be to employ someone under the age of 25 years through the Federal Government’s new PaTH initiative. Encouragingly, almost a third of SMEs (31 percent) confirmed they were likely or very likely to consider hiring a job seeker through this program. Younger business owners, aged under 40 years, were more likely (58 per cent) to use the program to hire young people.

“I believe we all should be very encouraged by these results. If just a small portion of Australia’s 2M SMEs took part in this new initiative and consider hiring a young Australian it will be a big success. There are nearly a quarter of a million young Australians out of work, so it is great to see SMEs becoming part of the solution to youth unemployment.

“With millennials set to define the future of the Australian workforce, we encourage small businesses to be a part of this internship program, and do what they can to create opportunities for the younger generation,” said Mr Reed.

www.myob.com

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Statement from Victorian Chamber of Commerce and Industry Chief Executive Mark Stone
 
The Victorian Chamber welcomes the release of the Victorian Auditor-General’s Report on reducing the burden of red tape, which was tabled in Parliament this week.
 
The Victorian Chamber has long championed the cause of red tape reduction, most recently in our 2016-17 State Budget Submission.
 
The Auditor General’s recommendations echo the calls of the Victorian Chamber to increase the level of public reporting on red tape reduction initiatives and to engage with businesses and the community to identify red tape priorities.
 
The report notes that a number of positive practices are being demonstrated by regulators and government agencies, including a sustained focus on red tape reduction; more rigorous assessments of the impact of red tape cuts and improvements in consultation.
 
However, the report also found that more needs to be done to understand how the red tape burden is changing in response to Victoria’s evolving economy, better assess whether past reforms have delivered on their objectives and engage more widely on red tape initiatives across government.
 
The Victorian Chamber will continue to work with the Government, the Red Tape Commissioner and the Commissioner for Better Regulation to reduce the burden of regulation on Victorian business.

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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IN PASSING a government bill to end sand mining on North Stradbroke Island in 2019, the Queensland Parliament has delivered a trifecta of pain for the state’s resources sector, according to a statement from Queensland Resources Council (QRC).

"In a mere five weeks the Parliament has backed the Palaszczuk Government’s ill-conceived Chain of Responsibility law which has sent shockwaves through industry and it has created open slather for objections in the courts to mining projects, even allowing people or entities in foreign countries to object to a Queensland mining project," QRC chief executive Michael Roche said.

"To cap it off, the Parliament has backed the government’s bill to close sand mining operations with the loss of up to 153 full time jobs in Sibelco’s mineral sands business.

"There will also be a severe flow-on effect with hundreds more contractors and businesses that rely on the Sibelco mine on the island also greatly impacted. 

"Premature closure of the mine and an inadequate economic transition strategy will be a sure recipe for a social and economic disaster for the Stradbroke Island community.

"At a time when the mining sector is under extreme pressure and losing jobs, Queensland cannot afford the luxury of pandering to minority pressure group demands to shut down a mining operation that has proved to be one of the most responsible, productive and durable in the state.

"The reality is that the evidence from elsewhere in Australia proves that economic diversification and transition from an existing major industry in a community is a long-term process.

"It takes many years to be self-sustaining and requires a far bigger transition package than the proposed $20 million. QRC notes that in the state budget, only $2.5 million was allocated to this package before mid-2017.

"Mineral products from Stradbroke Island are exported around the world and are used for a wide range of everyday items with high quality silica used in glass for bottles and windscreens, plasma TV screens and solar panels."

www.qrc.org.au

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THE Victorian Chamber of Commerce and Industry has heralded today’s launch by the Australian Chamber of Commerce and Industry of its key federal election policy platform aimed at boosting Australia’s global competitiveness.

Victorian Chamber Chief Executive Mark Stone said the Victorian Chamber had worked closely with the Australian Chamber in developing the Top 10 in 10: Ten steps towards a more competitive Australia platform.

“Victorian business plays an important role in Australia’s economy and stands to benefit enormously from the policy priorities outlined by the Australian Chamber today,” said Mr Stone.

“Top 10 in 10 outlines recommendations to increase Australia’s global competitiveness through practical measures that encourage innovation, lower business costs, reduce red tape and deliver world class infrastructure.”

“Over the past decade, Australia has fallen from 10th to 21st on the World Economic Forum’s Global Competitiveness Index, affecting not only our business and economic growth, but also our liveability.”

“We want to see Australia return to the top ten and are seeking a commitment from all political parties to implement reforms that will help us to become more competitive,” said Mr Stone.

The key recommendations outlined in the Top 10 in 10: Ten steps towards a more competitive Australia are: 

1. Give young people a chance to succeed by making it easier for employers to take on apprentices and trainees
2. Ensure government spending is sustainable by reducing it to less than 25% of GDP
3. Help industries grow through workplace regulation that better responds to their needs
4. Let entrepreneurs get on with growing their businesses by reducing government red tape each year
5. Create jobs by allowing employers and employees to negotiate workplace arrangements that best meet their needs
6. Boost incomes by cutting the company tax rate to 25% within ten years through annual reductions
7. Build the transport, communications and energy facilities we need by backing the independent plan of Infrastructure Australia
8. Lower building costs by bringing back the Australian Building and Construction Commission
9. Encourage innovation and value for money by facilitating greater competition in government-funded education, health and aged care services
10. Welcome more international visitors by making visas cheaper and easier to obtain 

For further information visit: www.top10in10.com.au

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

victorianchamber.com.au

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