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A major piece of the lead-up to the upcoming federal election set for 3 May has been what each political party will implement to assist small businesses throughout Australia.
When Jim Chalmers announced the federal budget on behalf of the Albanese government last week, many business representatives labelled it as “underwhelming” lacking the necessary changes that Aussie SMBs need to combat what has been a rather volatile business environment.
Business NSW chief executive Daniel Hunter claimed the budget lacked the “vision” that businesses and the economy require.
“Being so close to the federal election, this budget lacks the vision that business – and the Australian economy more broadly – needs right now. There is scant mention of business, tax reform, and the need to improve lagging productivity,” Hunter said.
“The federal government has more than $1 billion stashed in its back pocket for 2025–26 under ‘decisions taken but not announced’.”
“Small and medium-sized enterprises must be at the centre of any serious economic growth agenda and at the forefront of Australia’s response to rapidly changing global trade and geopolitical conditions. Just as households struggle with a once-in-a-generation cost-of-living crisis, SMEs face a cost of doing business crisis.”
Following on from those criticisms, CPA Australia chief executive Chris Freeland AM added that the “over-regulation” and “red tape” is affecting Aussie SMBs – concluding that the federal budget offered nothing to “offset the pain” Aussie SMBs are currently experiencing.
“Businesses and their advisers will find little in the federal budget that will help offset the pain all too many small businesses have been experiencing.
“The budget lacks ambition and a thorough understanding of what business needs. Not enough is being done to slash red tape or create the conditions and improve policy development that would shift the dial on Australian productivity and competitiveness,” Freeland said.
“SMEs – many of which have thin margins – needed a budget that would significantly alleviate the cost pressures they face every day.”
Now, Paul Robson, chief executive of MYOB, has offered some insights into what Aussie SMBs may be more inclined to vote for as they head to the voting booths in May.
“Australians now know they will be heading to the polls on May 3rd, and with more than 5 million Australians employed by small and mid-sized businesses, measures that help our SMEs thrive and grow will have an impact on the whole nation,” Robson said.
“There is a ‘cost of doing business’ that is challenging this community. MYOB’s latest Bi-Annual Business Monitor survey of 1,000+ SMEs has shown 40 per cent would vote for sector-specific stimulus to counteract the effects of inflation in the federal election. Cash flow remains a key area of concern, with the cost of utilities topping the list of stressors for SMEs.”
According to Robson, a reduction in certain tax rates are at the top of the list for small-business owners and operators across the country.
“On the minds of small-business owners and operator respondents as the election approaches are a reduction in the company tax rate to 20 per cent for small businesses (66 per cent), simplifying the GST and BAS reporting process (59 per cent) and making the instant asset write off permanent (58 per cent),” Robson said.
“Small and mid-sized businesses play a vital role in our economy, contributing more than half of Australia’s GDP. Consistency and predictability are key to sustain the invaluable role SMEs have carved into the economy.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
