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Federal Budget Feedback

COSBOA has expressed approval of the federal budget, which is seen as a progressive strategic and conservative budget leading into an election.

Peter Strong, CEO of COSBOA said “This is not full of special small business policies except for the instant tax write off which continues, but it will be good for small business if it creates the confidence we expect in the community. Consumer confidence means spending and growth. It is worth noting several inclusions and themes from the budget:

  • There is a focus on creating better transparency and fairness. More work on stopping phoenix firms that damage other businesses as well as robbing workers

  • Continuing toughness in tax collection

  • A focus on older people being part of the economy and the community

  • There are now tax cuts for 3.3m businesses including those with a turn over up to $10m We saw from the recent XERO report that those businesses with a turn over less than $2m used the tax cuts for business continuity and/or growth. Businesses with higher turnover up to $10m will use their tax cuts for growth

  • It should be noted that the business community contributed $18b to the budget

Mr Strong said there are some issues that need to be considered. “For example when assisting older workers into business we have to be mindful that we ensure their assets are protected. In the past we have seen retired people decide to start a business, something they have always wanted to do but couldn’t due to family responsibilities, but due to poor advice or unscrupulous franchisors they lose their life’s savings and their houses. People who start their first business are by nature optimistic and trusting. Pessimistic distrustful people do not start businesses. So, we must make sure their assets are protected as they dip their toes into the often wonderful sometimes horrible world of small business and self-employment.”

Mr Strong added “We are still concerned about the Vocational Education and Training sector. The development of skills for the emerging workforce and the current workforce is vital and is not being completed strategically to the benefit of workers and businesses. We need to have an employment service better connected to the unemployed, to business and to community needs.”

Mr Strong also stated that “it is good to see we are finally focusing on issues to do with the economy and tax. The opposition and minor parties are presenting cases based on their needs and beliefs and the debate is for a change constructive and based on current and future needs rather than some base ideology that belongs in last century.”

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