COSBOA today congratulated the government and in particular Minister Bruce Billson on the announcement of changes for support of start-up businesses and other key measures.
Peter Strong, prostate CEO of COSBOA, stated that “this is a fundamental and positive change that sends the right message to people looking to start a business. This change makes it easier to access expert advice at the most crucial moment in the life of a small business which is at start-up.”
The announcement states that from July 2016 new start-ups will be able to immediately deduct professional costs associated with starting a business rather than writing them off over a five year period.
COSBOA members know that many, if not all, people need the advice of lawyers and accountants when they start a business. This process can be expensive and is often given a low priority when hard-to-find cash is being spent on core business needs such as purchasing assets, fit-outs of shops, cafes or workshops and just maintaining living costs while no income is arriving in their bank accounts. Allowing these legal and administrative costs to be deducted immediately will motivate more people to seek expert advice and allow more money to be invested in growing the new business.
Mr Strong also highlighted that “the announcement also states that the process of business registration will be streamlined with a single online registration site. This will fix the current complex process which not just saves time and money but also removes frustration and stress, which is always a win for any entrepreneur. Less stress means more innovation.”
Mr Strong also added “we understand that this announcement came a week before the budget as this type of change, which might not appear that ground breaking or important, often gets lost in the heat of budget week. This announcement is meaningful and does change the focus at start up so that people will get the advice they need when they need it, not when it is too late.”
COSBOA also notes two other important announcements. One is the intention to remove impediments to small businesses accessing crowd sourced funds; a recognition by the Minister of the profound changes happening in the world from the constant advance of technology and communications. The other announcement is the focus on improving the current framework for establishment and regulation of corporations. If incorporation is made easier, then compliance costs will be reduced and more small business people will take advantage of the benefits that incorporation provides.
Mr Strong also added “in the end it’s all about ease of doing business and creating jobs; it’s about productivity and the economy. This is an excellent announcement; let’s see what else is in the budget for the most important part of the business community, the 2.1 million small business people.”