Business owners doubt impact of government policies

Less than one in three Australian small businesses applied for the $30,000 instant asset write-off introduced by the government this year, citing lack of funds and spending as a deterrent, the August 2019 Sensis Business Index has revealed. 

The research showed that while small business confidence is experiencing a post-election jump, with 57 per cent of businesses now confident in their prospects over the next 12 months, 83 per cent remain concerned about the current state of the economy. 

The report, which measures SMB activity, found that Tasmania remained the most confident state, with 63 per cent of businesses expressing confidence in their prospects, followed by Queensland at 60 per cent and Victoria at 58 per cent.  

"It’s great to see more than half of small and medium businesses across the nation feeling upbeat about their business outlook post-election, despite their concerns about the current state of the economy,” said Sensis CEO John Allan. 

But despite the increasing confidence, Sensis revealed that one in three business owners and managers believe the economy is slowing down and one in two believe it is at a standstill. Overall, 22 per cent of businesses expect an improvement in the economy over the next 12 months, while 30 per cent believe the situation will get worse.

South Australian businesses are the most concerned, with 24 per cent expressing fears about the economic slowdown, while 21 per cent of businesses in both NSW and Western Australia are worried about their prospects.

In addition to worries about the economy, one in three businesses (36 per cent) said the current government policies for small business are having no impact. 

“Over the years we have seen a growing perception among SMBs that federal government policies do not affect them and our latest index further cements this,” said Mr Allan.

Across the country, 37 per cent of businesses believe excessive ‘red tape’ is holding back their growth. This was highest in Victoria, with 41 per cent of businesses citing red tape as an issue.   

Access to finance also remained a significant issue, with the index finding that 30 per cent of business owners and managers believe it is harder to access finance than it was six months ago.