"Wake-up call": COSBOA shares eight-point policy SME wishlist

Australia’s leading small business lobby has outlined its key concerns ahead of the next federal election, with CEO Luke Achterstraat describing the “toughest operating environment in recent memory” for SME operators.

The Council of Small Business Organisations Australia (COSBOA) released its 2024 Small Business Perspectives report on Wednesday, highlighting the challenges facing entrepreneurs nationwide.

Beyond its assessment of lingering challenges — like the cost of doing business, difficulty hiring the right staff, and the energy transition — it also signals the policies COSBOA is likely to champion in the lead-up to 2025’s federal poll.

The cost of doing business remains a paramount concern for small businesses, the report says.

A COSBOA and Cyber Wardens survey of almost 2,100 small business owners found energy prices were their top concern.

To counter surging energy prices in recent years, the federal government has committed billions of dollars to energy bill rebates, including for small businesses.

The report makes clear that COSBOA seeks further action on SME energy prices, like group buying schemes allowing smaller ventures to band together to secure more affordable rates.

That idea is the first item of an eight-point policy wishlist.

In the report, COSBOA also calls for:

Rent relief schemes and tax concessions for corporate landlords with small business tenants,
Further government-backed programs to reduce and mitigate the risks faced by SMEs, helping to lower their insurance premiums,
Mandatory least-cost routing (LCR), permitting merchants to select the cheapest form of accepting contactless card payments,
Legislation ensuring big businesses pay small business suppliers within 14 days,
Bolstered mentoring services for first-time entrepreneurs, and simplified access to the Australian Business Registry Services,
Government consultation with small businesses when developing new policies and regulations,
An increased instant asset write-off policy, allowing immediate deductions for assets worth $150,000 for three years, for entities with up to $50 million in turnover.

In a statement accompanying the report, Achterstraat says COSBOA is gearing up for the next federal poll.

“With an election looming, we will continue to advocate for targeted policies that will alleviate business costs, bolster small business sustainability and contribute to the thriving economy where both businesses and consumers benefit,” Achterstraat says.

“This report should be a wake-up call to policymakers and politicians who seek to support their communities and address the cost of living for their constituents.”

Some items on COSBOA’s agenda are familiar.

COSBOA argued for mandatory LCR as the default option as far back as 2022, for example.

In an interesting twist, the report is sponsored by Commonwealth Bank, whose CEO Matt Comyn in August disputed Labor MP Jerome Laxale’s assertion that small businesses face unfair fees when processing card payments.

The group has previously championed maximum SME invoice payment times of 30 days.

But the federal government has since dismissed the idea of maximum payment times, for fears it could discourage bigger businesses from working with SMEs in the first place.

And the final item on the list — the expansion of the instant asset write-off scheme — was put forward by COSBOA in the lead-up to this year’s federal budget.

In his new statement, Achterstraat says further legislative support is needed to shepherd SMEs through these trying times.

“If we do not better policies to support the engine room of the economy, we will have less small business, reduced competition and be stuck with higher prices for longer,” he says.

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