Small businesses get behind tax cuts for big corporations
AUSTRALIAN small business owners have reacted positively to key measures introduced in the recent Federal Budget, new research from MYOB reveals.
Over half (56 per cent) of small businesses believe that lowering the company tax rate to 27.5 per cent for businesses with up to $10 million in revenue will have a positive impact.
The latest SME Snapshot also found that SMEs support increasing the instant tax write-off eligibility to include businesses generating up to $10 million in revenue. The survey found that 50 per cent of small businesses believe this eligibility increase would benefit their business.
"While this year's budget has come under fire for favouring big business, the results show that the majority of Australian SMEs believe that lowering the company tax rate is an important reform and will encourage growth. 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," said Tim Reed, CEO of MYOB.
The survey also revealed that 72 per cent of SMEs agreed growth would be encouraged through widening the definition of a small business. Tim Reed believes this move will result in SMEs feeling less restrained when it comes to planning for business success.
"It's encouraging to see these barriers to growth removed. The previous system discouraged SMEs to grow beyond $2 million in revenue because they lose the benefits of being a small business. Small businesses often rely on bigger businesses as customers - without stimulating investment in bigger business, small businesses won't receive the positive flow on effect," said Mr Reed.
In this month's survey, small businesses were also asked if they were in favour of the reduction in GST codes from seven to three as part of the government's BAS simplification trial. Not surprisingly, almost half of the businesses surveyed (47 per cent) were in favour of the new measure.