The federal government may be promising a ‘bread and butter’ budget when Treasurer Jim Chalmers delivers his economic blueprint in late October, but that is not stopping industry associations and tax professionals from flagging precisely what they would like to see in it for small business.
It is expected the first Chalmers budget will focus on implementing election promises, but prominent advocacy bodies also have technology-related issues on their minds.
The Council of Small Business Organisations of Australia’s chief executive Alexi Boyd (left) told SmartCompany COSBOA would like to see the government ensure that cybersecurity receives sufficient funding given the various threats individuals and businesses face.
Another idea Boyd is keen to see pursued by the federal government is place-based funding for regions in which a period of hardship, such has a natural disaster, has left the community and its small businesses in financial distress.
Accounting body CPA Australia is also drawing into its policy kit bag as the government gets closer to releasing the economic plan.
CPA spokesperson Dr Jane Rennie (centre) said the accountants’ peak body wanted the government to provide more financial incentives for SMEs to invest in technology.
“We know from our engagement with the sector that they can be overwhelmed by technology choices. In this situation, the federal government should both choose the technology and help to cover the cost,” Rennie said.
“Small businesses know they need to be on board with the latest technology, but they don’t always know which options are best for them. This is one of the critical reasons they fall behind.”
Technology, according to Rennie, is an area in which SMEs fail to invest properly, and their productivity and profitability suffer as a result.
Another long-term concern for CPA Australia has been the fact no incentive exists for small- to medium-sized businesses to seek financial advice from appropriately qualified professionals.
“A scheme offering businesses financial support to seek advice from trusted professionals, such as accountants, would pay economic dividends. Victoria recently introduced financial support worth $2000 for local businesses to seek professional advice,” Rennie said.
“This scheme experienced an avalanche of demand. A national scheme would be of huge benefit.”
Other commentators are suggesting there’s a bigger picture that needs to be looked at when it comes to the way governments collect and spend taxes in Australia.
Perigee Advisers principal Lisa Greig (right) said small business needs “courageous tax reform” that is fundamental, rather than a “few tweaks here and there” targeted at specific measures.
“Any tweaks are not materially helpful to small business and just make compliance a huge burden. Like the 120% skills and IT deduction,” Greig said, in reference to the tax deductions proposed by the previous government in March. Consultation on draft legislation for those deductions has recently closed.
“Small business needs workers and needs a budget that makes it straightforward to hire and retain staff — not an administrative nightmare of red tape.”
Former Shark Tank judge and entrepreneur Steve Baxter told Sky News last week that Australia’s federal system had been degraded to the point where the administrations spending money are not the ones collecting the taxes.
Baxter said a part of the problem is that the Commonwealth is the tax collector but states and territories are the spenders.
“I think most Australian governments would have far less problems with tax if they had a far better handle on spending,” he said.
Baxter said this contributed to a culture where there was no competition between the states in relation to business and the biggest differentiation point for entrepreneurs in choosing where to reside was which jurisdiction had better weather.
Tom Ravlic is a journalist and author with a deep expertise in accounting, corporate governance and regulatory affairs. He has worked as an accounting academic, policy adviser for one of Australia’s three major accounting bodies, and consulted on the development of accounting curriculum for universities and professional associations.
