THE highly anticipated tax cut for small businesses will provide "much needed relief for mum-and-dad owners" according to Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell, citing the agency's latest report.
The report highlighted that the amount of tax paid by the small business sector overall has increased, while the contribution made by big business has fallen.
The ASBFEO’s Small Business Counts statistics report, released on March 29, includes ATO figures showing the small business share of company tax revenue has increased two percent in recent years, while input from the big business sector has fallen three percent.
“A healthy small business sector is a prerequisite for a growing economy; there’s no doubt small businesses are doing their fair share when it comes to paying tax, not to mention creating job opportunities,” Ms Carnell said.
“The Federal Government’s foreshadowed company tax cuts for businesses with a turnover of up to $10 million will give 99 per cent of Australian businesses a tax reduction, and will provide a much needed shot in the arm for the sector’s growth prospects, enhancing the ability of small businesses to employ,” she said.
Compiled over the past 12 months, the ASBFEO statistics report brings together data and analysis from a range of sources including the ATO, ABS and Austrade, and has been released to mark the office’s one year anniversary.
“This report provides a unique insight into the sector; it ultimately reinforces the size and importance of the small businesses to the Australian economy, and outlines its growing diversity,” Ms Carnell said.
Among the report’s findings, Ms Carnell said the number of small businesses currently venturing into offshore markets is on the rise.
“Encouragingly, ABS data shows more and more small businesses are entering export markets, with 44 per cent of goods-exporting firms classified as small business,” Ms Carnell said.
“Many are also entering the global market place at an early stage of their development, giving rise to the ‘born-global’ phenomenon,” she said.
Ms Carnell said while many small businesses are at the cutting edge of innovation, she’d like to see more small businesses go down this path.
“Our report highlights ABS data showing small business accounts for 17 per cent of business expenditure on R&D; while this is encouraging, it’s a figure I think the sector can – and will – build upon, particularly as more small businesses realise the benefits of entering into strategic partnerships with larger companies, especially in industries like defence,” Ms Carnell said.
Ms Carnell said the purpose of the report is to be a resource for governments, public policy makers and researchers that will improve their knowledge and understanding of the Australian small business sector.
“We’re inviting feedback on the report and welcome comment from small business and others on how we can ensure this document is the go-to publication for small business stats in Australia,” Ms Carnell said.
The full report can be found on the ASBFEO website: www.asbfeo.gov.au where a feedback form is also available.
SMALL BUSINESS STATISTICS AT A GLANCE
- Over nine in 10 Australian businesses are small businesses;
- Small businesses account for over 33 percent of Australia’s GDP;
- Small businesses employ over 40 percent of Australia’s workforce;
- Small businesses pay around 12 percent of total company tax revenue;
- 30 percent of small businesses engage in product innovation;
- Small businesses account for 17 percent of business expenditure on R&D;
- 44 percent of goods-exporting firms are small businesses;
- 34 percent of business managers/owners are women.
AUSTRALIA has, for the first time, enticed more than eight million international tourists over the last 12 months, according to the Australian Bureau of Statistics.
The acceleration of international visitors has been dramatic, with the eight million mark being reached just 18 months after visitor numbers eclipsed seven million annually.
In contrast, it took more than six years for visitor numbers to climb from five million to six million.
“Since 2013, growth in the tourism industry has supercharged with visitor numbers breaking the six, seven, and now eight million mark,” Trade, Tourism and Investment Minister Steven Ciobo said.
“This rapid rise has come on the back of strong Coalition Government support for the tourism industry. The tourism industry is growing three times faster under the Coalition Government than it was under the previous Labor Government.”
Mr Ciobo said the Federal Government’s support for the tourism industry “hasn’t happened by accident”
There have been some key changes to the sector, credited with helping to boost inbound tourism, including a lowering of the value of the Australian dollar in recent years.
Mr Ciobo said one factor hardly remembered was the removal of the former Labor Government’s carbon tax “which slugged the tourism sector over $115 million in its first year alone”.
He said the previous governments cuts to the Tourism Australia budget were reversed into a record $639 million spend on Tourism Australia to promote Australia internationally.
There have also been several practical moves, including increasing the number of markets that have access to online visa lodgement from 72 to more than 200, including China, India and Indonesia.
The Government has also announced a new 10-year multiple entry visitor visa to encourage repeat visitation from China and made visa applications available online in Simplified Chinese – the first time Australia has trialled visa application lodgement in a language other than English.
Perhaps just as importantly, Australia has expanded international aviation capacity, including a tripling of gateway capacity between Australia and China.
“To drive further growth from our largest tourism market the Prime Minister and Chinese President have jointly designated 2017 as the Australia-China Year of Tourism,” Mr Ciobo said.
Queensland Resources Council (QRC) chief executive Ian Macfarlane has renewed calls for a new High Efficiency and Low Emission (HELE) coal fired power station in North Queensland to combat rising electricity prices.
Speaking at the Gladstone Engineering Alliance Breakfast, Mr Macfarlane said energy security was a serious hurdle for companies to remain competitive in the resources sector.
“Gladstone has a strong manufacturing and industrial base with two alumina refineries and affordable and reliable energy is critical in keeping these trade-exposed industries globally competitive,” Mr Macfarlane said.
“A recent QRC survey of resources chief executives found the state government’s decision to set the 50 percent renewables target by 2030 is a major concern to the sector.
“The survey also found that increases in electricity prices were making it hard to do business in Queensland.
“It needs to be a less ideological argument about where we get our energy from and a more practical discussion about how we provide both reliable and cheaper electricity and reduce greenhouse gas emissions,” Mr Macfarlane said.
“Gladstone is home to Queensland’s largest coal-fired power plants but more, cleaner baseload supply is needed in the NEM (National Electricity Market) grid, particularly in North Queensland, if we are manage more renewables and to prevent wholesale electricity spikes on days of high east coast demand.”
Mr Macfarlane said Gladstone’s LNG exports had more than tripled with all three LNG operations online for the first time over the calendar year.
“LNG exports out of Queensland reached a new record at 17.5 million tonnes and were exported to 14 countries across the world despite green activists claiming fossil fuels are in decline,” he said.
“This has been an enormous boost to the Queensland economy, providing vital export income and jobs for Queenslanders.”
The LNG sector is forecast to continue its record export growth that is being driven by China and Europe. The latest report by the Office of the Chief Economist estimates China’s LNG imports to have increased by 28 per cent in 2016 and Europe is forecast to increase by 21 percent a year until 2018.
“As we know from our current economic data, in 2015-16, Queensland’s gas industry contributed $12.8 billion to the state’s economy and supported more than 65,000 employees,” Mr Macfarlane said.