ROUNDTABLE: WHAT ABOUT SMALL & MICRO BUSINESSES?
Senator Fatima Payman
Senator’s proposals for economic summit
A tax band system for small businesses; a $100,000 tax-free threshold for micro businesses; harmonisation of payroll tax.
These are just some of the things the Federal Government should be considering at its economic roundtable in Canberra this week, according to business leaders who gathered in Perth for a small and micro business ‘roundtable’ of their own.
Hosted by Western Australia’s only independent senator, Fatima Payman, the small and micro-business roundtable brought together a group of leaders from small business associations and chambers of commerce across Perth.
“I have a family history steeped in small business, so this is an extremely important issue for me,” Senator Payman said.
“Australia’s small and micro businesses are facing strong new headwinds due to things like rising costs and more red tape, yet they have been absent from the debate in the lead up to this week’s economic roundtable,” she said.
According to the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, Australia is “sleepwalking into a ‘big corporate’ economy.”
Almost 98% of businesses in Australia are small businesses, which account for 33% of our nation’s GDP.
Small businesses provide jobs for 5.36 million people or 42% of the private workforce.
But just 20 years ago, small businesses contributed 40% of GDP and employed 53% of those with a private sector job.
With all of this in mind, Senator Payman held an economic ‘roundtable’ of her own on Friday (15/8) by inviting small business leaders to thrash out ideas that should be covered by the Canberra summit this week.
The resulting concepts for the government are:
- The introduction of a business tax band system similar to income tax. That way small and micro businesses could pay much less company tax, with the burden being taken up by the massive corporate multinationals who are poaching their customers.
- A $100K tax free threshold for small businesses, so that micro-businesses like tradies with few or no employees can thrive.
- The national harmonisation of payroll tax, so states can no longer poach businesses from each other.
- So that businesses can avoid crashing in their first few years of operation, second-year tax should be paid in instalments rather than up front.
- Increased funding and an awareness campaign for business ‘one stop shops’, which are NGOs that offer advice to owners so that they can comply fully with complex government regulations.
- A new approach to policy making, where small business bodies are invited to take part in the formation of any new rules or regulations, rather than being dictated to by bureaucrats with little or no business experience as happens now.
- A streamlining of the immigration system so that sponsorship of specialised overseas workers is far less onerous.
- An end to compulsory rural and regional service for working holiday visa holders with trades and other specialist skills that are required in the cities.
“We concluded that these are all sensible and achievable reforms that will help save Australian small businesses from their death spiral, and so I’m calling on the government and its roundtable to consider them,” Senator Payman said.
“All of Australia’s small and micro businesses would benefit, and we would preserve this important part of Australia’s economy and its culture.”
Senator Payman is available for interview in Perth this week.
Contact details:
Jeff Waters
Media and Communications Adviser
Office of Senator Fatima Payman, Australia’s Voice Senator for WA
Mobile 0473 930 824 (Text preferred)
Commonwealth Parliamentary Offices, Level 7,1 The Esplanade, Perth WA 6000
Australian Parliament House, S1.46, Parliament Drive, Canberra ACT 2600
All mail to: GPO Box B58, Perth WA 6838
Perth 08 6245 3322 | Canberra 02 6277 3286