In its pre-budget submission, the Council of Small Business Organisations Australia (COSBOA) has urged the Federal Government to implement the ‘twin engines’ of tax reform and red tape reduction to drive economic growth and protect the viability of small businesses.
“A perfect storm of rising costs, slowing demand, and mounting regulatory pressures is putting immense strain on small businesses – many of which are family-owned and built on personal sacrifices,” said COSBOA CEO Luke Achterstraat. “Without urgent reforms, we face record insolvencies, fewer entrepreneurs, and weaker competition. Ultimately, this means higher prices and lower living standards for all Australians.”
On the matter of tax reform, COSBOA has proposed the following measures:
- A modernised tax system to reward entrepreneurs, ensuring they retain more of their income
- Restoration of the Technology Investment Boost to improve cyber resilience and digital innovation for small businesses
- National leadership on payroll tax, including harmonisation and higher thresholds to promote small business employment
- Making the Instant Asset Write-Off permanent with a raised threshold of $150,000 to encourage investment
COSBOA also put forward the following proposals to reduce red tape:
- Mandatory provisioning of small business impact statements before any new policy proposal is brought before cabinet
- Establishment of a “small business flying squad” to streamline outdated or unnecessary regulations
- Creating a user-centric government system, simplifying processes with agencies like the ATO and Fair Work Commission
- Ensuring an industrial relations framework that is comprehensible and does not penalise casuals, contractors, or self-employed Australians
COSBOA also recommended the restoration of funding to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) to provide vital support and mediation services, the introduction of a Prime Minister’s Small Business Champion Awards to celebrate entrepreneurs, and the delivery of a quarterly Small Business Statement in Parliament to monitor the sector and outline government support measures
Achterstraat noted that approximately 49 per cent of small businesses are currently not breaking even, and further pressures will push many more over the edge. Related ata from the Australian Bureau of Statistics (January 2025) reported that small business employment declined by 0.2 per cent, which COSBOA fears may lead to economic consolidation, reduced competition, and higher costs for consumers.
COSBOA warned that if no decisive action is taken to implement tax reform and red tape reduction, Australia risks entrenched inflation, reduced competition, and declining living standards.
“The consequences of inaction will affect every Australian household,” said Achterstraat. “The opportunity cost of inaction is simply too great. Small businesses are the engine room of the economy, and bold reforms are essential to ensure their survival and the prosperity of all Australians.”
