A recent survey conducted by cloud-based business management solutions provider MYOB shows that SMEs are generally positive about this year's federal budget.
According to the MYOB SME Snapshot, a monthly survey sent out to 1.2 million MYOB users, 56 per cent of small business owners stated that lowering the company tax rate to 27.5 per cent for SMEs will have a positive impact.
Furthermore, half of all respondents said they support extending the tax write-off eligibility to businesses with turnover of up to $10 million.
“The majority of Australian SMEs believe that lowering the company tax rate is an important reform and will encourage growth,” said MYOB CEO Tim Reed.
“For every dollar a small business spends with a big business, big businesses spend $2 with small businesses – it is an ecosystem and we need to make sure all parts are healthy.”
The survey also showed that 72 per cent of SMEs believe widening the definition of a small business will result in growth.
“It’s encouraging to see these barriers to growth removed,” said Mr Reed.
Aside from the tax on earnings, 47 per cent of SMEs were also in favour of reducing the number of GST codes from seven to three.
The results weren’t all positive for the government, however.
SMEs were also asked if they would employ job seekers under 25 through the federal government’s Youth Jobs PaTH (Prepare-Trial-Hire) initiative. Nearly two thirds (61 per cent) said they would be unlikely to employ job seekers through this avenue. Just 31 per cent said they were likely or very likely to do so.
Regardless, Mr Reed is optimistic.
“If just a small portion of Australia’s [two million-plus] SMEs took part in this new initiative and consider hiring a young Australian, it will be a big success,” he said.
“With millennials set to define the future of the Australian workforce, we encourage small businesses to be a part of this internship program, and do what they can to create opportunities for the younger generation.”