Budget is a steady ship for small businesses

Steady ship for small business; no surprises

“The Treasurer has said that ‘Those looking for a big-spending pre-election Budget won’t find one;’ and he was telling it how it is,” said Jaye Radisich, who has just resigned as CEO of the Council of Small Business of Australia (COSBOA).

“The up-side of the predictable budget is that there is certainty for small businesses that can ill afford more instability or change as they are recovering from the GFC.

“If the Australian economy is stable, the cost and availability of finance will be within reach for small businesses that need capital to grow or smooth cash flow – which our research indicates is the number one issue of concern for small businesses.

“The tax reforms for small business released in the Henry Tax review last week represent the bulk of the benefits for small business enshrined in the forward estimates released in the 2010 budget.

“A reduction in company tax for small businesses and an instant depreciation write-off for small capital items will be welcome when they come into effect in 2012.

“In the 2010 budget funding has been retained for critical small business programmes including the Small Business Support Line, Small Business Online, Enterprise Connect and funding for Small Business Advocacy Services through 36 local Business Enterprise Centres (BECs).

“There is also good news in this budget for small business franchisees and franchisors that will have access to enhanced mediation and dispute resolution services in line with the new Franchising Code.

“Going forward small businesses will continue to call for more streamlined tax arrangements for sole traders and independent contractors, trust reforms and positive FBT changes,” Ms Radisich said.

“A major concern for small businesses remains the disproportionately high cost of compliance when it comes to interacting with government. Reducing the administrative burden of business to government dealings remains a top priority for COSBOA.”

Important recently-announced initiatives are also funded in this budget and through the forward estimates including the new Paid Parental Leave programme, the Small Business Superannuation Clearing House, National Business Names and the Standard Business Reporting (SBR) programme.

“COSBOA maintains its strong opposition to the increase in tobacco excise which will ultimately increase the tax take, reduce the non-tobacco consumer spend in small retail outlets including newsagents and service stations and will not reduce the incidence of smoking in Australia.”