Does the Budget stack up against what SMEs asked for?
(5 April 2019 - Australia) Outlined below are the main Federal Budget initiatives targeted at small to medium sized enterprises (SMEs), along with whether small to medium business owners really wanted the Government to prioritise that initiative.
The data comes from a survey released this week of 1257 Australian SMEs, as part of Scottish Pacific's March 2019 SME Growth Index. The SME Growth Index research is conducted independently by East & Partners, on behalf of national working capital funder Scottish Pacific. Business owners, CEOs or senior financial staff of SMEs with annual revenues of A$1-20 million across all states and key industries were directly interviewed.
- Company tax cuts top SME wishlist
Scottish Pacific CEO Peter Langham said SME company tax cuts being brought forward would be welcomed by the sector, given this was the top initiative SMEs wanted to see (nominated as top priority by 27 percent of business owners). One in five SMEs want the newly elected government to prioritise cutting red tape by reducing their administrative and regulatory burden.
- Asset write-off welcome
Almost 24 percent said continuing the asset write-off should be the Federal Government's top focus for SMEs. Mr Langham said they will be delighted with the Budget's flagged increase of the instant asset write-off up to A$30,000 (from A$25,000) and opening this initiative up to SMEs with up to A$50m turnover (an increase from A$10m turnover).
- $2b securitisation fund for SME access to finance
This government announcement will not have much of an impact at the coalface for business owners. Mr Langham said SME Growth Index results showed that not quite 3% of business owners believed this should be the government's SME priority. Mr Langham said SMEs wanted government action on things they see affecting their business on a day-to-day basis, rather than big picture projects such as the NBN or small business funding initiatives.
“Simplifying the complex tax system and cutting red tape, and on a state basis getting rid of payroll tax, would have the biggest daily impact for Australia’s small to medium business sector. “These are the everyday impact items that will energise SMEs, encourage business investment and drive growth and innovation,” he said.
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