Budget banking on SMEs to continue driving economic growth

MYOB has praised the 2017 Budget for providing new growth opportunities for SMEs and for extending the $20,000 instant asset tax write-off.

With more than 1.2 million business clients in mind, MYOB says SMEs will also welcome the Federal Government’s continued support to drive company tax cuts for all businesses, not just small ones.

MYOB also praised the measures contained in the budget to make it easier to start and run a business. Specific measures called out for praise include:

  • The $300 million the Federal Government has committed to make available to State Governments to reduce small business compliance costs;
  • The $100 million commitment to the advanced manufacturing industry;
  • Increasing the applicability of crowd-sourcing;
  • Better use of digital technology to make it easier to register a business; and
  • Increase support under the Entrepreneurs’ Programme to provide additional support for regional businesses.

“All these measures will encourage more people to start a business and for those in businesses to invest, grow and increase employment – a win for all Australians,” says MYOB CEO Tim Reed.

“Small businesses are at the heart of the Australian economy. In an increasingly competitive global environment, it is great to see the Government is continuing its commitment to making it easier to run a business. The Government’s decision to extend the $20,000 instant asset tax write-off for a further year, and to make it accessible to businesses with revenue of up to $10 million, up from $2 million in previous years, is welcome news for SMEs.

“It encourages business growth and is exactly the type of measure that delivers confidence to the business community. However, the Government should go one step further next year and make the $20,000 write-off permanent. Making the $20,000 instant tax write-off permanent for new assets is a key priority for SMEs. A recent MYOB SME Snapshot survey found 60 per cent of SMEs considered it to be the most pressing need for small business in this Budget,” adds Reed.

Reed has also expressed disappointment around budget measures to introduce a new levy on businesses hiring employees on working visas.

“We are concerned about the extra compliance costs forced on small businesses in the courier and cleaning industries. We understand they are measures introduced to try to reduce the black economy but they will end up increasing the burden on all business owners in these industries – something that will increase costs and slow growth.”

Inside Small Business

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