Small business conditions have remained moderate while labour costs have risen, according to a recent survey by the Australia Chamber of Commerce and Industry (ACCI).
Released on 20 May 2008, the ACCI Small Business Survey revealed:
- small business conditions moderated over the March 2008 quarter;
- labour costs continued to rise;
- overall growth of employment moderated;
- investment in plant and equipment slowed from previous high rates;
- investment in buildings and structures declined.
- expectations of a further moderation in Australian economic growth over the next twelve months;
- growth of sales revenue was lower over the quarter;
- growth of wage and non-wage labour costs continued to be high;
- price growth moderated over the quarter from the previous all time high level;
- profit growth declined and expectations for the March quarter were also negative, indicating small business was not confident of a quick turnaround.
According to ACCI Director of Industry Policy and Economics Greg Evans, despite the dampening conditions, the 2008 Federal Budget makes a “sound start” in setting the macro-economic parameters necessary for further business development - including overall tax reform. This was particularly apparent in the announcement of the extension of CGT to small business concessions and related entities and partnerships.
“However, more work will be required to reduce red-tape, regulation and the compliance burden, and take interest rate pressures off small business,” Mr Evans said. “These non-budget reforms are critical to focusing business endeavours towards productivity rather than government compliance burdens.”
Concerns that small business is suffering from red tape was also apparent in a Westpac survey released on 12 May.
According to Federal Small Business Minister Dr Craig Emerson, the survey provides further evidence for the Federal Government's bold new reform agenda to slash administrative red tape.
"For example, NSW small businesses spend almost 20 hours per week on administrative duties, five hours more when compared to Queensland businesses," Dr Emerson said in a statement dated 12 May. "That's more than two days work on administrative duties that can only serve to restrict small businesses and hinder their growth," he said.
According to Dr Emerson, the Council of Australian Governments (COAG) recently endorsed a re-energised and bold new agenda of reform to cut administrative red tape. The agreed reform program now covers 27 areas of overlapping and inconsistent regulation across the Commonwealth, States and Territories from Occupational Health and Safety regulations to building regulations.