Giving small businesses a better deal in the upcoming federal budget a top priority for 72% of Australians: MYOB survey
The key to helping drive economic recovery and stopping a recession lies in the hands of Australia’s small business owners.
The key to helping drive economic recovery and stopping a recession lies in the hands of Australia’s small business owners, with 84% of Australians agreeing that supporting small businesses in the upcoming federal budget will pave the way to a brighter future, according to a new survey of 600 Australians commissioned by business management platform MYOB.
With the federal budget being handed down on May 9, 72% of respondents said they would like the topic of small business to be addressed in this year’s budget, making it the top measure in the survey.
This is followed by 50% of respondents wanting consumer rent relief and affordable housing to be addressed, 43% wanting tax cuts, 31% wanting investment in the environment, and 26% wanting childcare rebates to be addressed.
The MYOB survey has also revealed 54% of respondents want to see more support for small businesses than big businesses. However, only one third of those polled are confident that this month’s budget will deliver a positive outcome for small businesses.
According to the most recent MYOB Business Monitor, the top pressures facing small businesses are fuel prices, cost of utilities and interest rates.
MYOB chief employee experience officer Helen Lea said cost of living pressures hit small and medium sized enterprises (SMEs) twice, and it is no surprise Australians want to see more support for them in the budget.
“We know cost of living pressures have hit most corners of the country, and what’s felt around the kitchen table is also felt by small business owners. As the sector that employs over 7.4 million Australians, and contributes more than $700 billion dollars to the economy, it’s vital this sector is invested in and supported,” Lea said.
“When times get tough, the country’s 2.5 million SMEs feel it in their own personal finances, as well as facing a decrease in discretionary consumer spend.
“Australians understand the pressures on small businesses, and their place within the business landscape … The research shows 80% of respondents are more conscious of shopping locally in this economic climate.
“It’s a challenging time for consumers and small businesses alike; the former are tightening their belts, which means SMEs face growing costs, inflation and rate rises as well as a reduction in foot traffic and spend. Anecdotally, local cafes are seeing their regulars come in less frequently, and high-street restaurants and shops say people are spending less. This research reflects those patterns.”
In the face of economic tightening, the top budget measures consumers believe will assist small businesses to keep the economy growing are tax cuts, support for hiring workers, and subsidies to get small businesses online and using digital products.
Lea added that the Small Business Energy Incentive, announced this week, is something many want.
“The desire to be more sustainable is there, but the cost has been prohibitive. It’s heartening to see the government look at how they can provide relief and support to the SME sector,” she said.
“We also anticipate the government will pass the Technology Investment Boost in the coming weeks, which will help SMEs to invest in the necessary technologies to increase the productivity of their business.
“Targeted support measures, like the Technology Investment Boost, will deliver support to where it is needed most. Our latest data shows small businesses want to grow their tech usage, which will help improve accuracy and decrease errors, but haven’t been able to.
“The number one barrier is cost, with 26% of the SME sector saying the cost outlay for such services is causing hesitation. If the Boost isn’t extended, there is a risk that SMEs will not take advantage of them in the very short time remaining this financial year.”
