When the Federal Budget was delivered back in May, John Saulo, co-founder of digital marketing agency NGNY, rated it as a 7/10 – with the extension of the $20,000 instant asset write-off something he was particularly pleased to see.
But at the Small Business Secrets - End of Financial Year forum, he asked to retract that rating.
“I think in retrospect, I’d probably [give it] more like a five and a half to six.”
“He’s a harsh taskmaster,” replied Michael McCormack, the Federal Minister for Small Business. “The simpler BAS (business activity statement), the single touch payroll… The 27.5 per cent tax rate, now that’s the lowest it’s been since 1940. Some of those measures that we’ve put in place, I think will benefit your business, perhaps not immediately, but over time.”
It was one of many testy exchanges, as business owners, politicians, experts and industry leaders hashed out the issues effecting small business in our hour-long special program.
Minister McCormack Source: SBS
The Commonwealth’s Indigenous Procurement Policy drew harsh criticism too, despite being linked to a boost in indigenous entrepreneurialism, with an increase in government spending on goods and services provided by indigenous businesses increasing from $6 million to $156 million in under 12 months.
Herb Smith, founder of bush food producer Dreamtime Tuka said in reality, many indigenous businesses couldn’t access the IPP.
“It’s really the larger corporate companies and bigger business that are actually benefiting from it, not small businesses such as myself.”
Penalty rates
While business owners are glad changes to penalty rates mean operating on Sundays, holidays and evenings has become less financially onerous, they're overwhelmed and confused by the various factors that have to be considered when calculating exactly how much staff are entitled to.
Rates change depending on whether staff are full-time, part-time or casual, and which sector they work in (for example, fast food vs. restaurants vs. retail).
The crowd looks on at the forum. Source: SBS
Nahji Chu, former owner of Vietnamese food business Miss Chu, recently opened her new restaurant, Cha Li Boi in Bondi Junction.
She said she found calculating penalty rates one of the most confusing aspects of running her business early on.
“It’s confusing [even] now that I have an infrastructure behind me with a team that does all the paperwork for me, still.
“So I’m a restaurant, I’m a takeaway business, I’m also a bar and restaurant. I wholesale and retail so I buffer against a lot of things, you know? But the law does not look after people like me who have a very dynamic business.”
It's a dilemma familiar to many in the hospitality industry.
Want to find out the secret to small business success? Tune into #BizSecretsSBS at Sundays 5pm on SBS, stream on SBS Demand, or follow us on Facebook, Twitter or Instagram.
