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Budget a reboot for small business, but more tax reform needed

Adrian Flores
Adrian Flores
15 October 2020 1 minute readShare
Andrew Conway

The federal budget is a welcome opportunity for small businesses to reboot the economy and create jobs, but an accounting body warns the federal government that it should not come at the expense of broader tax reforms.

The chief executive of the Institute of Public Accountants (IPA), Andrew Conway, said last week’s federal budget is designed to reboot the economy which faces the bumpy road of a pandemic-fuelled recovery.

“This budget is regarded as being all about ‘jobs, jobs, jobs’. However, it is important that we focus on ‘reform, reform, reform’; specifically, reform to taxation, reform to regulation and reform to workplace relations,” Mr Conway said.

“We all understand the level of debt that Australia now finds itself with, but unfortunately, this is unavoidable if we are to get the country moving again.

“We need to get the doors of small business and the borders open again, create jobs and get the cash registers humming again, in order to recover and grow in a new ‘COVID-normal’ world.”

Mr Conway said the range of federal budget measures are all designed to provide structural support to small business.

However, he also conceded that most of the tax measures are temporary in nature, and while they will bring forward significant activity over a one- to two-year period, the next series of structural reform measures will need to create the foundation needed for a longer-term prosperity.

“The hard part is still to come and that is structural reform, which we acknowledge comes with political risk but is essential for sustainability and to reap the benefits of this early investment,” Mr Conway said.

“Long-term economic stability and prosperity will only come once we address the structural deficiencies of our tax system and in the broader economy and remove the regulatory burdens that form a wet blanket on small-business survival and growth.

“It’s relatively easy to spend money which is necessary for the reboot versus structural reform which is hard work and will take courage to deliver.

“It is therefore essential that we pursue the holy grail of meaningful and holistic reform if we are to grow from this reboot phase to kicking the real goals the economy requires for a sustainable and prosperous future.”

Budget a reboot for small business, but more tax reform needed
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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