The Council of Small Business Organisations Australia (COSBOA) is calling on the Productivity Commission to keep small businesses, including retailers, in mind.
In its submission to the commission this month, COSBOA has spotlighted four key pillars, including establishing a resilient economy, building skilled workforces, harnessing technology and streamlining healthcare regulation.
“This is a pivotal moment for real reform; the kind that will shape Australia’s economy for the next generation,” COSBOA chair Matthew Addison said.
“Small businesses and the self-employed are doing it tough. They are weighed down by rising costs, relentless red tape, regulatory complexity and new tax threats.
“If we squander this opportunity, we risk choking the very sector that sustains five million jobs and contributes $500 billion to our economy.”
This comes as small businesses face industrial relations changes, rising costs and cashflow pressures, tax collection pressures from the ATO post-COVID and a regulatory environment that “ties businesses up in compliance instead of enabling growth,” according to COSBOA.
Addison said Australia needs to regulate for growth, not for risk.
“Every new regulation should be tested against a simple question – how could a sole trader, a café owner with one employee or a small business employing ten people actually implement this? If government gets this wrong, productivity will stall before it starts.”
Within its submission, COSBOA has strongly backed the Productivity Commission’s recommendation to cut the small business tax rate to 20 per cent, with modelling showing this would inject $11.4 billion into GDP over five years.
COSBOA has also called for the instant asset write-off to be made permanent and increased to at least $150,000, along with targeted tax incentives for start-ups, R&D, digitisation and accredited training.
“A lower tax rate means money back into the economy – to employ more staff, adopt new technology and invest in growth. But we must also be clear – the proposed cashflow tax is not acceptable, it’s more red tape,” Addison said.
COSBOA also supports targeted incentives for work-related training, micro-credentials, faster pathways to upskilling, and tailored advisory services to help small businesses navigate training options.
The peak body has also backed national recognition of qualifications across states to break down barriers to hiring.
The council is also pushing for incentives for digital adoption across the industry and is calling for the national rollout of proven digital adoption grant programs. It has also recommended a light-touch approach to AI regulation, supported by a national AI adoption plan.
“Small business wants to digitise – the appetite is there – but costs and complexity hold many back. Let’s make it easier, not harder, to take up new technology,” Addison said.
COSBOA has reiterated its support for retaining the Privacy Act exemption for businesses under $3 million turnover, with alternative compliance pathways for those small businesses with turnover over the threshold.
As for the healthcare space, the council wants to see quality and safety standards aligned, while allowing professional associations to accredit practitioners across all programs.
“Small businesses aren’t looking for handouts,” Addison said. “What we want is a fair, simple, and enabling system that rewards effort, encourages investment, and cuts down on the duplication and red tape that holds us back.
“That means simplifying tax and regulation, designing policies that reflect the realities of sole traders and small employers, backing investment in skills and technology, and putting prevention and efficiency at the heart of the care economy.”