2022 Election: Small Business Promises

It has been a particularly challenging couple of years for small business owners and with rising inflation, business owners heading into the polling booths tomorrow are going to be wanting to make sure they are voting in their best interest now more than ever.

What are the policies and main promises the parties have for small businesses? Both of the major parties have made promises for small businesses this election in the hopes of targeting votes across the SME market.

The Liberal government, if re-elected plans to create 400,000 new small businesses and inject $17.9 million into the Business Energy Advice Program (BEAP). While opposition leader Anthony Albanese said if elected that Labors policies outline sweeping economic reforms including big changes to reflect rising inflation like raising the minimum wage as one of many ways to stimulate economic growth.

With the rising inflation, interest rate hikes and general pandemic related economic uncertainty tax obligations are a concern for many business owners. Prior to the pandemic, the Coalition's small business tax cuts were popular with the SME community and both major parties have included tax cuts in their 2022 policies.

Tax cuts aside, there are a variety of ways in which economic and business policy can impact small businesses. An interesting policy to note for SMEs in the case of a Labor lead minority government is the ‘right to repair’ laws the Greens have outlined in their economic policy. The Greens want to amend consumer and Competition Regulations to deliver a right to repair and amend the consumer and copyright laws to bring consumers a right to refund and improve repairers' access.

This could be potentially game-changing for SMEs and in particular micro-businesses as ‘right to repair’ reforms can have significant flow-on effects on supply chains and more importantly, encourage new business models by creating and sustaining a market for refurbished products.

Regarding the major parties, here are the key policies small business owners should know about:

The Liberal Party and The Nationals

• Increased tax deductions for businesses with turnovers under $50 million to specifically assist with training and technology investment;
  • $550 million in tax relief over the next 3 years by way of a 20% deduction for external training through RTOs.
  • provide $3.7 billion to increase skills development 
  • additional $2.8 billion to upskill apprentices by removing over 30 different payments for employers
  • $1 billion allocated to 20% boosted deduction for technology-based investments (spend $100 claim $120 on related activities and assets)
  • Wage subsidy incentives for employers taking on new apprentices.
• Further cuts to red tape to assist with cash flow by;
  • streamlining ATO and Australian Border Force engagement 
  • automatic calculations of tax instalments for state payroll via data sharing with the ATO 
  • dedicated small business unit at the Fair Work Commission to assist with navigating workplace obligations 
• Make it easier for Australian small businesses to access finance with the continued support of the SME Guarantee Scheme and SME Recovery Loan Scheme
• $17.9 million investment into the Business Energy Advice Program (BEAP)

 

Australian Labor Party 

• Fee-free TAFE to address skill shortages, as well as lower-cost child care to remove barriers to returning to work
• Draw on Labor’s history of working with unions, workers and industry to deliver better outcomes with settings that are simpler, more accessible, and fair for businesses.
• Guarantee specific needs for small businesses in times of crisis by working closely with states, territories, industry groups and communities to end the uncertainty that surrounds when and the extent of support small businesses are able to access.
• Ensure small businesses are paid on time to sustain growth across the economy with a mechanism to ensure payment within 30 days.
• Assist small businesses to negotiate more equitable agreements with large partners by making unfair contract terms illegal
• Drive genuine collaboration between small businesses and the government in order to reduce the time small businesses spend doing taxes, reduce paperwork, and target support.
• Reduce small business transaction costs at the point of payment by establishing a timetable for implementing least-cost routeing or something similar. Higher transaction fees eat into profits disproportionately, which is costing small businesses $804 million per year.
• Increase small company participation in Commonwealth procurement, creating more prospects for business and jobs in Australia. To develop a Future Made in Australia, the Commonwealth can utilise its $190 billion purchasing power to promote small businesses, giving greater value for money and growing the local economy.

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