iscover Running SMBs ‘has become harder than it needs to be’, says ASBFEO
BusinessIn its pre-budget submission, the Australian Small Business and Family Enterprise Ombudsman has called for targeted governmental action to better support SMBs.
Ombudsman Bruce Billson has highlighted the importance of small businesses to “economic dynamism, productivity, living standards, competition and innovation.”
“Yet for many owners, running a small business has become harder than it needs to be," he said.
The Ombudsman’s pre-budget submission has stressed that regulation is often “designed with large organisations in mind and small businesses are left to absorb the cost and complexity.”
“Small businesses are doing the heavy lifting in every town and suburb. They are the strength and vitality of local communities but too many are being worn down by costs, complexity and unfair practices they can’t control.”
According to Billson, the budget presented an opportunity for the government to shift from short-term fixes to lasting reforms that made it easier to start and run a small business.
Focus areas in the pre-budget submission included improving the country’s tax and regulatory settings and removing unnecessary barriers so small and family businesses can thrive.
Introducing early-stage incentives such as a tax discount or offset would, Bilson suggested, “allow businesses to retain more of their initial earnings for reinvestment when it matters most.” According to the Ombudsman, improving these tax settings would stimulate enterprise innovation and investment.
The submission also addressed the common financial challenges in the early years of a business, such as cash flow and access to financing. Billson highlighted how the aforementioned incentives “will help prevent the ‘valley of death’ for small enterprises.”
“Requiring a small business impact statement for every Cabinet submission, preliminary and formal regulatory impact statement, and new policy proposal, would help ensure measures intended to affect, or likely to impact, small and family businesses are informed by practical insights and direct input from this community,” he said.
“Low-cost ways government can do this now include establishing transparent merchant fee structures and the ability for small businesses to recover the reasonable costs of processing electronic payments where least-cost routing is unavailable.”
Access to affordable insurance coverage and government support at all levels will also improve the enterprise environment, the submission highlighted.
While small businesses are by their nature resilient, the Ombudsman said more was required to sustain jobs, productivity and community.
"Small businesses do not want special treatment, they want a fair go."
“With the right policy settings, small businesses will innovate, invest, employ and grow. That is good for the economy, good for productivity and business dynamism, good for communities and good for Australia’s long-term prosperity.”
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
