What does the election mean for small business?

20/08/2010: What does the election mean for small business? I've been monitoring the campaigns and is it me or have we heard very few promises that affect us as small business owners; at least, that is few promises, until this week and we only have two days to go! What is this?

Yep, I've heard about people smugglers and the budgie smugglers, but strangely the two parties have waited four weeks until now to announce their policies for small business and it leaves me staggered.

As the business owner of Taurus Marketing for 15 years now, growth, stability and longevity still lie central to my concerns. What about you?

So what does this election mean to operators of small businesses? And what will we be faced with when we wake up on Sunday morning?

Well for a start, whoever wins, the changes won't be implemented overnight, so we will have to be patient. The two parties are so close in the polls at the moment that it's difficult to call. There is even talk amongst my peers that there could be a hung parliament — the first in 70 years .

If that happens, we are going to need even more patience.

Well let's see what happens. No-one can be sure; the polls are changing daily. While we are waiting, here is a glimpse of the policies announced so far that affect small business owners.

Campaign promises

Labor

• Funding to help SMEs in human resources management.
• Funding for environmental
• Funding for environmental stability.
• Will allow all small businesses to write off assets costing up to $5000 instantly from July 1, 2012.
• Cut corporate tax rate to 29 percent on July 1, 2010.
• Give companies earning under $2 million a head start on a 1 percent cut in the company tax rate to 29 percent.
• Introduce tax write-off for companies with turnover less than $2 million who buy an asset worth up to $5000.
• Simplify depreciation rules by creating a single depreciation rate for other assets.
• Introduce a new research and development tax credit scheme that will provide a 45 percent refundable tax credit on R&D.
• End credit card fees.Coalition (Liberal)Released the only policy that specifically deals with SME issues.
• Has a "small business first" approach to government/
• Cut company tax 1.5 percentage points to 28.5 percent from 30 percent.
• Cut compliance burden.
• Make business loans more affordable by changing banking regulations.
• Require that any new government policies to be accompanied by a "small business impact statement".
• Introduce a SME ombudsman; a person who acts as a trusted intermediary between an organisation and some internal or external constituency while representing the broad scope of constituent interestsThe Coalition, in my opinion, is leading on policy when it comes to influencing SMEs and addressing their needs.The top nine issues for small business according to media commentary are:The need for a dedicated advocate that is our voice in policy creation and influence.
• Affordable and accessible financing options (tax, mortgage lending and financial management) to increase productivity.
• Renewed confidence to do business since the bulk of it is decreasing.
• Clarity in unfair dismissal laws and more justification.
• Reduction in complexities and red tape associated with employment.
• Rising costs of superannuation.
• Liability for parental leave.
• Availability of genuine advice.
• Economic management, direction and vision so SMEs feel confident in investing and expanding their businesses.The most important issues for SMEs reported are industrial relations, finance and tax, immigration and lack of leadership.So what's important to you?My concern is current business confidence is low and NSW reports sales revenues are weak and profits have lowered. Because of higher interest rates, small businesses emerging from the GFC find that "recovery is still fragile". I am certainly being cautious; although I have hired three new positions in the past few months."People in business are saying they're seeing their worst figures in 10 years, which is very worrying," said Peter Strong, executive director of the Council of Small Business Organisations of Australia. As we perform such a critical role in the Australian economy, it's pretty frightening that "failure of government policy" has added to pressure at many small firms.So government parties, it is time to help the 2 million of us that make up the backbone of Australia's economy. I think you need to address SMEs concerns and involve our SME agenda firmly in policy creation.So, on Saturday, make sure you know your polling booth location and vote accordingly!(to view the blog in Ninemsn click here)

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