SMEs overwhelmed with red tape

NDIS

Multi-layered regulations on business and a complex tax system are key challenges for Australian SMEs, according to new research released by NAB.

Part two of NAB’s whitepaper, MTM Whitepaper Chapter 2, explores what matters most for Australian SMEs and how they are approaching business in 2017 and beyond. The research reveals that while 65 per cent are confident Australia will continue to be a great place to operate a business, the burden of red tape and taxation is holding them back.

Angela Mentis, Chief Customer Officer of Business and Private Banking, said the research affirms that while running a business can be very satisfying, day-to-day administrative and regulatory challenges can take its toll on business owners.

“As the nation’s biggest business bank we believe a simpler tax system is important so that our SMEs can free up capacity to spend more time on innovating and growing.

“Anyone who runs a small business understands only too well the pressure of complying with monthly BAS, annual income tax returns and a host of other paperwork. It’s no surprise to me that 69 per cent of SMEs still cite dealing with red tape as taking a lot of effort,” said Mentis.

“And we will continue to challenge all levels of government and business community to come together and advocate for one clear definition for small business. I hear from business owners they are dealing with multiple layers of government and industry who all have different ideas of what constitutes a small business. It makes the job of the small business that much harder.”

“But let’s not underestimate the size of the challenge. Freeing up capacity for small businesses requires simplification at all levels.”

While 84 per cent stated that the government should provide even better tax breaks to small business, big business was also identified as a key impediment to SME success.

“Recent announcements this year, including tax cuts for businesses up to $50 million were a positive step in rebooting Australia’s competitiveness and prosperity. Just under half of the SMEs that we surveyed also told us dealing with big companies makes it tough for their business to succeed- taxation isn’t the only problem here,” Mentis said.

“As a bank and a major employer in Australia, this is something we’re leading with simpler contracts, fast access to credit online and we’re one of the first big companies to sign the Australian Supplier Code, providing greater certainty around payments times. We take seriously our commitment to the timely payment of more than 1700 contracted suppliers which provide NAB with over $4.8 billion worth of goods and services each year.

“We are absolutely driven to simplify across all parts of our business model – be it through our digital innovation, the way we communicate with our customers, the way we lend to customers, and how our contracts are written. We put the customer front and centre in everything we do – and simplification for our SMEs in particular is a key focus.

“This is where we all need to be – to have the commitment and desire to turn the optimism and confidence we see today in SMEs into lasting activity that will move Australia forward,” Mentis concluded.