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PRESS RELEASE: Small business loses out again

PRESS RELEASE: Small business loses out again
Tuesday, 14 May 2013
Small businesses across Australia can expect further pain this year thanks to tonight's Federal Budget which has again foregone any recognition of the value of the small business sector, according to the Institute of Public Accountants (IPA).
"Instead of a reduction in the regulatory burden and provision of long sought  after tax breaks to support the vital small business sector, we find ourselves with yet another Budget that will do nothing to promote the small business sector," said IPA chief executive officer, Andrew Conway.
While we welcome measures such as the Industry Innovation Precincts, Enterprise Solutions Program and changes to the venture capital regime, there is nothing substantial to create sustainable, long term improvements in productivity.
"The contribution of small business to the Australian economy speaks for itself. There are 2.7 million small businesses in Australia; which represents 96% of all businesses; employing 47% of private sector employment; and they contribute 35 % GDP.
"In the IPA's pre-Budget submission he IPA made a number of recommendations to the Government on behalf of small business. These included adopting a concessionary rate of tax for small business balanced by removing complicated tax concessions.
"The Government's claim that it has acted on a third of 138 recommendations from the Henry Tax review is not a proud record of tax reform.
"The Budget is noticeable for what it doesn't include rather than inclusion of any significant  measures for reform.  We need a plan to build and sustain the future wellbeing of the small business sector so that it can continue to make a vital contribution to the Australian economy", said Mr Conway.


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