The Council of Small Business Organisations Australia (COSBOA) has urged policymakers to provide support for small businesses, citing the latest economic data from the Australian Bureau of Statistics (ABS).
The ABS figures show that the Australian economy grew by just 0.2 per cent in the March quarter, with public spending seeing the largest detraction from growth since 2017.
In Addition, GDP per capita swung to a 0.2 per cent decline from a 0.1 per cent rise in the December quarter.
COSBOA CEO Luke Achterstraat said the figures are a wake-up call for policymakers, highlighting the urgent need to boost private sector investment and support businesses.
“The data paints a clear picture of an economy under pressure; with business owners bearing the brunt of rising costs, policy uncertainty and falling consumer demand.
“Private sector investment is stalling. Productivity is stagnant. Small businesses are doing everything they can, but the settings are not helping them to grow,” Achterstraat stated.
To address the issues, COSBOA is calling for reforms to unlock small business potential and restore national productivity.
The proposed measures include reducing the small business tax rate from 25 per cent to 20 per cent, making the instant asset write-off permanent, flexible and fit-for-purpose training pathways, and balanced, supportive digital and privacy reform among others.
The organisation stressed that reducing the small business tax rate could boost the Australian economy by up to $11.4 billion and create up to 3370 permanent jobs.
“The modelling confirms what we’ve heard from countless small businesses: tax relief boosts cash flow, reignites investment, and increases output, wages, jobs and growth,” said Achterstraat. “This is a policy that delivers a clear net benefit to the whole Australian community.”
