Small firms losing faith with Abbott govt

Most small businesses believe the Abbott government is failing to understand the issues affecting them.

It's only been just over 12 months but the hopes and aspirations of small business under the Abbott government are beginning to fade.

A survey by software provider MYOB found nearly two thirds (61 per cent) of small and medium sized enterprises feel the government is failing to understand the issues affecting them.

Dissatisfaction with the government rose to 37 per cent in the September 2014 MYOB Business Monitor Report released on Wednesday, from 32 per cent when previously surveyed in February.

However, dissatisfaction with the government remains below the 49 per cent recorded in August 2013 just before the September election.

Those satisfied with the government also ticked down to 23 per cent from 24 per cent previously.

"It's a shame to see support for the government slipping away after they made good gains in reaching the small business community," MYOB boss Tim Reeds says in a statement.

Small companies are particularly unhappy about the reduction of the $6500 instant asset tax write-off and the $5000 write-off on vehicles to $1000 in both cases.

Both tax breaks were tied to the abolition of the mining tax.

They are also against the reintroduction of fuel excise indexation, but most of all they dislike the idea of a levy on business to pay for the government's paid parental scheme, even though it won't affect small business.

However, Liberals still command support for their handling of the economy more generally at 37 per cent.

But the proportion of the 1000 business operators polled who don't trust any party to manage the economy is almost as high at 31 per cent.

Only 17 per cent trusted Labor to handle the economy.


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