Missed opportunities for small businesses

There were some “hits” but also some missed opportunities from small business in last week’s Federal budget, according to a spokesperson for the sector.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said the record spend by the government would help lift small business out of the Covid-19 crisis and provide a much-needed boost for confidence.

The positives highlighted by Ms Carnell included $1.2 billion wage subsidies for apprentices and trainees, $850 million JobMaker hiring credits for people aged 16 to 35, $15 billion in JobKeeper payments, a $1.9 billion provision in loss carry back tax, $26.7 billion instant asset write-offs, an $800 million national digitisation plan and $4.3 million mental health support for small businesses.

Given the number of measures targeting small business the government has clearly acknowledge the role the sector will play in the nation’s economic recovery, she said.

However, Ms Carnell said there were opportunities missed to further support small business.

Among those were the failure to establish a small business procurement panel to ensure the sector gets a larger share of government work, more childcare support for women in small business, greater certainty around eligibility for research and development incentives and not abolishing Fringe Benefits Tax for at least two years.

Ms Carnell added that small businesses should also have been given more financial help through the crisis by enabling them to access revenue contingent loans and obtaining professional advice valued up to $5000 to judge businesses’ viability.