The Federal Budget and small business
12 May 2017
At Sage we believe in small business – we’ve often said they are the lifeblood of our economy. It is our mission to be the “champion of small businesses” in Australia and around the world.
Like everyone in Australia we held our breathe the night before the budget announcement was revealed, but we were pleased to see how much the Australian Government values small business and their contribution to our economy as demonstrated by the new measures introduced. After all, 3.2 million small and mid-sized businesses in this country that rely on this support.
Smaller businesses in Australia face many hurdles and the gap between success and failure can be extremely thin; the new budget measures will certainly assist in that journey. The extension of the instant asset media write off and the $300 million dollars promised to help cut red tape are huge steps in the right direction to help small businesses succeed.
In October 2016, Sage held an intimate round table event, hosted by our Global CEO Stephen Kelly, with small business owners and government representatives to discuss the issues facing small businesses in Australia today. The burden of red tape was the number one issue mentioned as an obstacle to success, so it is encouraging to see the Federal Government reshaping the budget and taking genuine steps to address this.
While the new budget measures are a boost to small business, what more can larger business and government do together to help build the resilience of small business in Australia? How can we address the important issue of large business not paying smaller suppliers on time? How do we assist our small and mid-sized businesses to increase exports? Why are we limiting the 20K instant asset write off to a year-by-year proposition?
These are the types of questions we need to keep asking if we want to help small business in Australia prosper. Because when small business does well, we all do well.
On the burden of reducing red tape the challenge now shifts from funding to implementation. The state governments will need to step up to the mark to ensure their programs really do reduce the administrative burden on new and growing businesses.
The latest budget provides a useful demonstration of the Government’s desire and ability to help small business. However, more can and should be done. At Sage, we are committed to keeping the pressure on to grow this important sector. We will continue to ask the hard questions and we will be keeping a close eye on the progress of the promises made.
By Alan Osrin, Sage Australia Country Vice President