Federal Small Business Minister Fran Bailey has released a report, “Encouraging Enterprise”, highlighting the “success” of Australia’s 1.88 million small businesses.
Released on 25 July 2007, Ms Bailey said the report outlines:
- Recently-introduced government initiatives that facilitate small business innovation and growth;
- Various ways in which the government has improved the operating environment for Australia’s small businesses; and
- The government’s “strong ongoing support” for small business.
“Encouraging Enterprise features case studies highlighting growth success stories of a number of small businesses across a range of themes including exporting, entrepreneurialism and intellectual property,” Ms Bailey said.
According to Ms Bailey, key findings of the report include:
- Since June 2003, the number of employing small businesses has increased by 31%; and
- Small businesses provide employment for almost 3.7 million people - accounting for almost half of private sector employment.
“Small business is now more important than ever as it continues to drive innovation, exports and jobs growth,” Ms Bailey said.
Industry Statement Seeks to Streamline ABN Registration and Trademark Searching
According to the report (p3), the government remains committed to its small business industry statement “Global Integration: Changing Markets, New Opportunities”, released in May this year. The statement includes an $89.2 million initiative over ten years to streamline Australian Business Number and business name registration, including trademark searching.
The report says the ABN/Business Names Project will provide a combined, seamless single online system for small businesses - as opposed to the current separate processes. The objective of this unified system is to reduce the compliance burden on small businesses, improve awareness and rights by comparing trademarks more easily and improve information delivery.
Importantly, the report also highlights the new enforcement of mutual recognition of business licenses under section 32 of the Mutual Recognition Act 1992. In February 2007, premiers and chief ministers from all states and territories signed a declaration for full and effective mutual recognition of a range of occupations. This means more flexibility in moving between jurisdictions for small business workers such as builders, carpenters, electricians, plumbers and mechanics.
Tax cuts and super reform
The report highlights a number of budget tax measures to address small business concerns (p11). These include:
Red tape reductions were also discussed in the context of GST, including:
- Streamlined systems for registration, reporting and recordkeeping;
- Simplified accounting methods to help calculate GST obligations;
- More ATO support for small businesses;
- Changes to excise cycles for small businesses with a turnover of less than $2m; and
- Consistent refund, remissions and drawback provisions.
According to the report, the federal government has also taken “significant steps” to reform the superannuation system, with more simplified contribution limits making it easier for small business owners to plan for their retirement.
Cutting red tape
In January 2006 the federal government’s Banks Taskforce released its recommendations in Rethinking Regulation: Report of the Taskforce on Reducing Regulatory Burdens on Business. The report discusses the implications of these recommendations, in particular the compliance and competition impacts of regulatory measures and the cumulative effects of regulations on small businesses (p21).
“The government’s commitment to tackle red tape is ongoing and it has commissioned the Productivity Commission to commence an annual review process to identify regulation that is unnecessarily burdensome, complex or redundant, or duplicated regulation in other jurisdictions,” the report says.