We like what we see, but turn words into action to benefit small business
MYOB commends the Federal Government for returning the budget to surplus and for highlighting the importance of small business to the economy.
MYOB particularly welcomes increasing the instant asset write-off to $30,000 and raising the threshold to $50 million.
One of Australia’s leading technology companies, MYOB, has praised the Federal Government for returning the budget to surplus saying it will boost the small business sector, and called for the measures announced for small business to be passed by the Parliament before an election is called this weekend.
The most significant initiatives promised to small business were the increase in the instant asset write-off to $30,000 and raising the threshold to $50 million; reductions in personal income tax; and the commitment to pay SME owners $8,000 for hiring an apprentice to assist reversing the skills shortage.
MYOB CEO, Tim Reed said that while these were positive initiatives, small business owners across the country wanted to see these words turned into action.
“With two more sitting days until we anticipate an election is called, we urge the Government to not waste time, and to turn words into action immediately by introducing these initiatives to Parliament and for all to agree.”
In tonight’s Budget, MYOB calls out these specific measures as wins for Australian SMEs:
- Increasing the instant asset write-off to $30,000 and raising the eligibility threshold to $50 million
- An extra $60 million in funding for the Export Market Development Grant
- More reductions in personal tax cuts, specifically the plan to reduce the 32.5% rate to 30% in 2024, leading to additional discretionary spending
- A significant investment in infrastructure, creating jobs and boosting regional economies
- Doubling the Skills Shortage payments, paying SME owners $8,000 for hiring an apprentice
- Further commitments to crack down on sham contracting
Speaking about the budget, CEO Tim Reed said, “This is the first time we have seen a surplus budget in over 10 years and it is to be commended.
“Business, particularly small business, does well when the economy does well. We are reassured by the health of the economy today and going forward. As every small business owner needs to balance their budget, so too should the Government.
“What is most pleasing is that this commitment to running a surplus appears to be bi-partisan, with Labor also stating their commitment to run a budget surplus. This bi-partisan support provides certainty and builds confidence for small business owners, which in turn builds their confidence to invest.”
Extending and expanding the instant asset write-off the biggest win for SMEs
“The increase in the instant asset write off to $30,000 is welcomed as it provides a significant opportunity for small businesses to grow and stimulate the economy.
“It would be a welcome commitment to see the Government make this a permanent feature of the small business tax system.”
Acceleration of personal tax cuts lead to increased spending
“The personal income tax cuts are welcomed as not only do personal income tax cuts provide much needed relief to household budgets, they stimulate the economy with small businesses right across the country benefiting from renewed consumer confidence to spend.
“We know that the type of measures introduced in the Budget tonight will encourage more people to start a business and for those already in business, to invest and create more jobs.”
Infrastructure investment set to reinvigorate regional Australia
“It is great to see the substantial investment in infrastructure announced tonight. It not only provides the construction and infrastructure sectors with certainty for work over the long term, but it also provides a boost to employment and the related sub-contractors, particularly in regional areas where many of the projects will be completed.”
What small business want to see in an election campaign
“Moving into the election campaign we hope to see continued support for small businesses in the form of practical policies that assist with cashflow, encourage digitisation through initiatives such as e-invoicing, and ensure SME owners are setting themselves up for a prosperous future with adequate superannuation.
“These are of critical importance to small business owners and we strongly encourage our Government of the day to push ahead for change that matters the most.”
Tim Reed has been CEO of MYOB for 11 years. He’s passionate about the potential technology has to transform society and help businesses succeed.