Small business apprehensive about Federal Budget

With the Federal Budget less than a week away, new research from MYOB has revealed almost half (43 per cent) of Australian small businesses are not confident it will deliver a positive outcome for them.

Echoing this finding, the survey asked SMEs if they trust the Government to deliver the best outcome for them, and 35 per cent said no.

“This research tells us the small business community is showing trepidation ahead of the upcoming Federal Budget,” said Tim Reed, CEO of MYOB.

This latest SME Snapshot survey from the cloud accounting provider found that SMEs considered the introduction of a permanent $20,000 instant tax write-off for new assets to be the most pressing need (60 per cent), followed by lowering of the company tax rate (48 per cent), and subsidies for employing young Australians (42 per cent). The research also revealed instant tax write-offs were the main area where small businesses are looking for cashflow support from the Government (33 per cent).

“It’s no surprise that Australian SMEs want the $20,000 instant tax write-off for new assets made permanent in this year’s Budget,” said Reed. “When we asked this question in our June 2016 Business Monitor, 68 per cent said making the policy permanent was the number one initiative they would vote for.

“The $20,000 instant tax write-off is a budget measure which has an immediate impact on the sector it targets and we can’t ignore the benefits it provides to the Australian small-business community. I call on the Government to think seriously about the impact of not making the $20,000 instant tax write-off permanent, which would effectively undo the great work it has done in this space.

“Last year, Treasurer Scott Morrison said of small business: ‘they are the hope of the side.’ This year’s budget presents an opportunity for the Government to back small business and cement their future in Australia,” said Reed.

This month’s survey also asked businesses if they believe the Federal Budget would have a better outcome for SMEs if the Labour Party was delivering the budget. Almost half (49 per cent) of respondents disagreed with this statement.

Inside Small Business

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