COSBOA Urges Productivity Commission to Prioritize Small Enterprises
The Council of Small Business Organisations Australia (COSBOA) has reached out to the Productivity Commission, emphasizing the necessity of considering small businesses, particularly retailers, in their deliberations.
In its recent submission, COSBOA has pinpointed four pivotal pillars: fostering an enduring economy, cultivating skilled labor, leveraging technological advancements, and refining healthcare regulations.
“This is an opportune moment for substantial reform; the type that will influence Australia’s economic landscape for generations to come,” asserted COSBOA chair Matthew Addison.
“Small enterprises and the self-employed are currently grappling with significant challenges. They are burdened by escalating costs, incessant bureaucratic hurdles, regulatory intricacies, and imminent tax liabilities.”
“If this moment is squandered, we jeopardize the very sector that underpins five million jobs and contributes a staggering $500 billion to our national economy.”
This appeal arises amidst mounting pressures on small businesses, including alterations to industrial relations, inflationary costs, cash flow difficulties, and intensified tax collection efforts from the ATO in the post-COVID era, coupled with a regulatory framework that entangles businesses in compliance rather than facilitating growth, according to COSBOA.
Addison articulated that Australia must adopt a growth-centric regulatory approach, rather than one that emphasizes risk.
“Every new regulation should be scrutinized through a fundamental query – how would a sole trader, a café proprietor with a single employee, or a small enterprise employing ten individuals implement this? Erroneous government action here could stifle productivity before it even starts.”
In its submission, COSBOA has ardently endorsed the Productivity Commission’s recommendation to reduce the small business tax rate to 20 percent, with forecasts indicating this would contribute $11.4 billion to GDP over five years.
Additionally, COSBOA advocates for the permanent establishment of the instant asset write-off, proposing an increase to at least $150,000, along with targeted tax incentives aimed at start-ups, research and development, digital transformation, and accredited training initiatives.
“A reduced tax rate translates to reinvestment into the economy – facilitating enhanced employment, acquisition of advanced technology, and expansion efforts. However, it is crucial to emphasize that the suggested cash flow tax is unacceptable; it simply adds to the existing red tape,” Addison stated.
COSBOA also supports specialized incentives for work-related training, micro-credentialing, expedited pathways to skill enhancement, and bespoke advisory services to aid small businesses in navigating training alternatives.
The organization has endorsed national recognition of qualifications across states to dismantle barriers to recruitment.
Furthermore, the council is advocating for incentives promoting digital adoption industry-wide and is calling for a nationwide implementation of effective digital adoption grant programs.
It further recommends a minimally invasive approach to AI regulation, backed by a comprehensive national AI adoption strategy.
“The desire for digital transformation among small businesses is evident; however, financial constraints and complexities deter many from progressing. The objective should be to simplify, not complicate, the adoption of emerging technologies,” Addison remarked.
COSBOA has reiterated its commitment to preserving the Privacy Act exemption for enterprises with a turnover under $3 million, advocating for alternative compliance pathways for those exceeding the threshold.
In the healthcare sector, the council seeks alignment of quality and safety standards while allowing professional associations to accredit practitioners across diverse programs.
“Small businesses are not seeking handouts,” Addison emphasized. “What we require is a fair, uncomplicated, and enabling framework that rewards diligence, stimulates investment, and reduces the unnecessary duplication and red tape that hinders progress.”
“This entails streamlining tax and regulatory measures, crafting policies that resonate with the realities faced by sole traders and small employers, supporting investment in skills and technology, and placing prevention and efficacy at the core of the healthcare economy.”
Source link: Ragtrader.com.au.
