A recent survey by Bibby Barometer has found that Australia’s small business community isn’t holding much optimism for the forthcoming Federal Budget, which will be handed down by Treasurer Wayne Swan on Tuesday May 14.
According to Bibby’s latest research, conducted in February and involving more than 200 small businesses Australia wide, the key inclusions that small businesses would like to see in the Federal Budget are reduced taxes for small businesses (51 per cent), a reduction in Government red tape (40 per cent) and relaxed import/export regulations (20 per cent).
But small businesses aren’t optimistic about a positive outcome, says Bibby, with 47 per cent anticipating the new Federal Budget will actually hinder small business growth, while 25 per cent expect it to support small businesses.
“Small businesses want to see more certainty from government addressing the issues facing the sector,” Gary Green, National Sales Director, Bibby Financial Services, said. “For example, the manufacturing sector is contracting, insolvencies are a major concern for retailers due to reduced consumer demand and businesses are concerned about the lack of available funding.
“As a result, many SMEs are in a holding pattern with regard to investment, and have been for some time. Our survey found approximately half (49 per cent) intend to maintain their current level of investment over the next 12 months compared to 28 per cent who intend to invest more in their business. Policies such as a reduction in company tax rates for all companies by more than one per cent for the 2013-14 income year and a reduction in the cash rate will help encourage reinvestment and productivity, but more needs to be done.”
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