COSBOA urges focus on education and simplification in pre-budget submission

COSBOA has highlighted the main challenges confronting Australia’s 2.5 million small businesses in its pre-budget addressing 29 priorities raised by their members across a wide range of industries and policy areas.

These include finding ways to empower small businesses in the economy in 2023 and beyond through simplification and deregulation and looking at a streamlined and reduced cost migration processes to address worker shortages.

The submission is also calling for education outcomes to enhance Australian workforce skills as well as increased tailored support, particularly with respect to mental health, advocacy, advice, and education.

Additionally, the organisation is urging the government to consider the full implementation of the Modernising Business Registers program, short-term tax measures, and programs to enhance, improve, protect, and incentivise small-business people to take initiative.

The submission has not asked for broad adjustments to the company tax rate, instead emphasising the importance of temporary full expensing and the instant asset write-off that allows businesses with an annual turnover below $5 billion to immediately claim a tax write-off for assets used or installed by 30 June 2023.

The submission has stated a further extension is “critical for small businesses that have ordered equipment which has been delayed by supply chain issues.

“Without this extension, significant tax deductions will not be available which had been costed into the decision to purchase,” the submission stated.

COSBOA has also urged for the government to consider the revival of the instant asset write-off for items worth $100,000 and below, stating the measure would slash “administrative and accounting costs for taxpayers and the Government.”

“The ongoing work of the Deregulation Taskforce should be expanded with ongoing funding for Payroll Tax alignment between the states and territories and its integration with single-touch payroll,” the group added.

COSBOA said Australian small businesses employ 68 per cent of Australia’s workforce and in terms of gross domestic product, contribute 56 per cent of value-added and as such should be considered key partners in rebuilding Australia’s economy as Australia emerges from the COVID-19 pandemic.

“The COSBOA 2023–24 pre-budget submission articulates what is needed now and future programs to ensure the priorities of Australian small businesses are reflected in Government budget strategy and policies,” COSBOA said in its submission.

“Small businesses need a greater level of tailored support measures and less administrative and regulatory pressures.”