Budget 2016: What small businesses are looking for

Last year the government unveiled a $5.5 billion jobs and small business package in its budget, but what can small businesses expect this year?

Hamilton Kings

Get It Sorted Founder Hamilton Kings Source: SBS

Cutting red tape and the simplification of the tax system remain two of the biggest issues for small business, according to Deloitte tax partner Spyros Kotsopoulos.

More needs to be done to assist Australia’s small businesses, Mr Kotsopoulos told SBS, but change has been slow.

“It may be driven by the fact there should be a consultation process for tax reform,s o a lot of these issues have been put on the backburner until there is a clear mandate which way we go," he said.

But I think that everyone is in unison in saying there has to be some tax reform consultation process.

“As to what it would be, I think is still to be decided, but I think everyone understands that it has to happen."

Mr Kotsopoulos said , like last year’s immediate write-off of assets up to $20,000, should be extended beyond small businesses.

“Tax cuts, I do think, should be for a greater number of taxpayers,” he said.

“I have an issue with having too many tax rates for too many different taxpayers, because you find then it drives behaviours: if [a business has] under $2 million turnover, versus over $2 million turnover."

Legal services company owner Gervase Liddy said the asset write-off had benefited his business last year.

“We were able to immediately go out and invest in computers, photocopiers, phone systems," he said.

"That was the immediate benefit to us.”

But he said more needed to be done to facilitate business in Australia.

“I'd like to see something done about the NBN rollout, I think it's going too slowly. And I'd like to see something done about bracket creep - that affects all employees. And lastly, I want to see the government get fair dinkum about multinationals, I don't think they're paying their fair share of tax.”

Starts-ups are also keen to get more of the pie when it comes to support for their fledgling businesses.

Founder of Get It Sorted, Hamilton Kings, told SBS News starts-ups benefited from research and development grants and he hoped the government’s innovation focus would lead to even more support.

“I'd really like to see some help towards - some grants towards - business which are keeping revenue in Australia,” he said.

“With us being an advertising portal, [we’re] competing with the likes of the giants Google and Facebook who are sending all our money offshore."

Start-ups are already able to claim an immediate deduction for professional dispenses.

3 min read
Published 27 April 2016 at 7:26pm
By Ricardo Goncalves
Source: SBS