Australia is a nation full of small business owners. Queensland for example is home to more than 426,000 small businesses (those employing less than 20 people) that are at the core of every industry sector. They are in every community in every region and represent over 97% of businesses state wide. It’s no surprise that our research showed that these small businesses currently employ approximately 44% of all private sector workers, and this employment percentage is growing every year.
“Small businesses complement the economic activity of large organisations by providing them with the goods and services that make up the backbone of the supply chains of larger projects.”
So, what are small business owners crying out for and what part can the Australian Government play?
Cash flow is the lifeblood of any small business and slow payments disproportionately affect smaller businesses, who often lack the financial resources to cover the period spent waiting for invoices to be paid. The government recently backed faster payments, requiring government departments to pay invoices to small business within 20 days. This is a great starting point with the Australian Government paving the way for other sectors to follow suit.
Small business owners are desperately wanting to be able to gain access to unsecured business loans for their businesses. Many small businesses are needing short term unsecured business loans to capitalise on new business opportunities to help their business grow. A growth industry within Australia is the Alternative Lender Market. Several new lenders have come into the marketplace over the past five years and are now offering competitive Unsecured Business Loans up to $250,000 with simple online data being supplied for assessment of the loan. Speaking with a trusted Finance Broker is a good way to compare a number of these Alternative Lender options that are now out there and available to SMEs.
The continuation of the $20k instant asset write-off in 2017 was big news for small business and a great of sign of government support. To help small businesses grow, initiatives such as this need to be a permanent fixture within the tax system. It provides a much-needed shot in the arm for many small businesses and will continue to stimulate the economy.
Australia had not reduced company tax for most businesses since 2000. Small businesses (with a turnover of up to $10 million) applauded the tax cut from 30 per cent to 27.5 per cent over the 20162017 financial year and hope the government will continue to support further cuts in future budgets.
Government support for small businesses is in high demand throughout a small business’s start-up phase and Government Incentive Schemes are one way that small business owners can gain assistance. (Such as the R&D incentive scheme) Small businesses are calling for more of these styles of Government Initiatives to be introduced and made available to small business owners. Not only this but small business owners have also requested that the process for applying for these incentives be made simple.
Small business owners are drowning in red tape. The good news for small business owners is that in the May 2017 federal budget, the government pledged $300 million to reduce the amount of red tape obstructing business. The government must deliver on this pledge. Streamlining red tape for small business owners makes for a better business experience for customers and helps the Australian economy grow faster.
Being able to access reliable, current advice is imperative for any small business owner to ensure that they are equipped to continue the growth of their business. More and more SMEs now have a trusted Partnership with an experienced Finance Broker and Financial Planner to help keep them on track and plan for the future.
We hope you have really enjoyed this article. If you have questions, please let us know.
Fox Finance Group is one of Australia’s leading personalised financial service organisations. We have spent many years getting things right so that you can rest assured that you are getting the very best financial advice available on the market today. As a Fox Finance Group Client, you have access to your very own Accredited Loan Specialist along with access to your very own Qualified Financial Planner.
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Learn more about the Author Nathan Drew.
Nathan joined Fox Finance Group in 2018 to help drive the strategic growth of the business and also help build on the solid foundations that have held strong in the business since 2006.