iscoverFollowing the Productivity Commission’s release of its interim reports, the business body is working to keep the “dynamic and resilient economy” conversation alive.
Don’t ‘squander’ productivity, reform opportunities, warn small businesses
22 September 2025
•
9 minute read
The Council of Small Business Organisations Australia (COSBOA) has made recommendations to the Productivity Commission across four key pillars to seize this “once-in-a-generation opportunity” to deliver reform.
The “once-in-a-generation opportunity” the body is pushing for was focused on creating a more dynamic and resilient economy, building a skilled and adaptable workforce, harnessing data and digital technology, and delivering quality care more efficiently.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Matthew Addison, COSBOA chair, said the government needed to act now to deliver reforms that would drive national productivity and unlock the full potential of small businesses.
“This is a pivotal moment for real reform; the kind that will shape Australia’s economy for the next generation. Small businesses and the self-employed are doing it tough,” he said.
“They are weighed down by rising costs, relentless red tape, regulatory complexity and new tax threats. If we squander this opportunity, we risk choking the very sector that sustains five million jobs and contributes $500 billion to our economy.”
Addison added that COSBOA’s submissions were fuelled by the reality that many small business owners were struggling and that the way they were “simply surviving” was a win.
In its submission, COSBOA made many points for and against the suggestions put forward by the Productivity Commission.
It noted that it strongly backed the recommendation to cut the small business tax rate to 20 per cent, with modelling having shown that this would inject $11.4 billion into GDP over five years.
Additionally, the body called for the instant asset write-off to be made permanent and increased to at least $150,000, along with targeted tax incentives for start-ups, research and development, digitisation and accredited training.
“A lower tax rate means money back into the economy – to employ more staff, adopt new technology and invest in growth,” Addison said.
“But we must also be clear – the proposed cashflow tax is not acceptable, it’s more red tape. Small businesses need simplicity, not more complexity.”
COSBOA also noted that it supported targeted incentives for work-related training microcredentials, faster pathways to upskilling and tailored advisory services to help small businesses navigate training options, as well as supporting the retention of the Privacy Act for businesses with a turnover of under $3 million.
According to Addison, now was the time to act as employers, and the self-employed were facing relentless industrial relations changes that stripped flexibility, soaring costs and cash flow pressures, intensified ATO tax collection and a regulatory environment that tied businesses up in compliance instead of enabling growth.
“We need a new mindset: regulate for growth, not for risk. Every new regulation should be tested against a simple question: how could a sole trader, a cafe owner with one employee or a small business employing ten people actually implement this? If government gets this wrong, productivity will stall before it starts,” he said.
“Small businesses aren’t looking for handouts. What we want is a fair, simple, and enabling system that rewards effort, encourages investment, and cuts down on the duplication and red tape that holds us back.”
“That means simplifying tax and regulation, designing policies that reflect the realities of sole traders and small employers, backing investment in skills and technology, and putting prevention and efficiency at the heart of the care economy.”
Addison concluded that the faster the government helped small businesses, the faster productivity and the economy would be on the road to improvement.
“This is a once-in-a-generation chance to reset the system. We cannot afford to squander it.”
“COSBOA stands ready to work with government on practical solutions that will give small businesses the confidence to invest, hire and innovate. Because when small business prospers, so does the nation.”
You need to be a member to post comments. Become a member for free today!
