Opposition Small Business spokesperson Bruce Billson says the Federal budget fails to address the significant issues facing Australia’s small businesses, arguing not enough has been done to address red tape and poor access to credit.
“Burgeoning red tape, access to credit, small business concerns don’t seem to figure in this budget,” Billson told SmartCompany.
According to Billson, it’s not surprising small business missed out: the Small Business Minister, Nick Sherry, is not in Cabinet, so its voice is not heard in key decision-making.
The Government’s plans to scrap the Entrepreneurs’ Tax Offset and replace it with a $5,000 tax incentive for a new car purchase raises alarm bells for Billson.
“The offset was a tax incentive for people to set up their own businesses, and it seemed to be making a worthwhile contribution,” Billson says, arguing more than 400,000 start-ups and micro-businesses had taken it up.
“The argument that it was difficult to administer is an interesting one, but 400,000 benefitted from it, so how hard can it be?” Billson says.
On the new car tax write-off, Billson says while anything that provides assistance to the sector is welcome, it is a not a grant – as many have suggested – and in any event, isn’t available until 2012-13.
Further, he questioned whether small business would be sufficiently enticed to splash out on a new ute just for a marginal tax offset.
He argues the claimed cashflow benefit resulting from the car write-off would require a small business to spend nearly $34,000 to receive an extra tax benefit of $1,275 in the year of purchase.
And while Billson supports measures to increase skills and training, Billson says those working for themselves are as deserving of support as employees, and yet Prime Minister Julia Gillard has a very “unionist” view on workplaces.
“The only workers she seems to think about are employees,” Billson says.
Billson is particularly upset over the Government’s plans to increase reporting requirements for independent contractors in the building and construction industry, arguing they add to pressure from the Australia Taxation Office, the Fair Work Ombudsman and Australian Building and Construction Commission.
And he said changes to Pay-As-You-Go reporting are simply commonsense, with a mooted increase to 8% simply unrealistic for many small businesses.
Billson says the Government should take a leaf out of the Coalition’s small business policies, which include:
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