The majority of SMEs feel positive about the small business measures in the 2016 Federal Budget according to new research from MYOB.
The MYOB Snapshot, a monthly online survey of a portion of MYOB’s 1.2 million customers, found 56% of respondents believe that lowering the company tax rate for businesses with up to $10 million revenue will have a positive impact, while 50% expect the instant tax write-off eligibility would benefit their business.
In addition, almost three quarters (72%) agreed growth would be encouraged through widening the definition of a small business.
MYOB CEO, Tim Reed, says previous system discouraged SMEs to grow beyond $2 million in revenue because they lose the benefits of being a small business.
“Small businesses often rely on bigger businesses as customers – without stimulating investment in bigger business, small businesses won’t receive the positive flow on effect,” he adds.
The survey also questioned SMEs on whether they supported reducing the GST codes on business activity statements from seven to three, with 47% in favour of this measure.
And almost a third of SMEs (31%) say that would be likely or very likely to hire a job seeker under the age of 25 years through the Federal Government’s new PaTH (Prepare, Trial, Hire) initiative, with business owners aged under 40 the most likely to use the program (58%).
Reed believes the results are very encouraging. “If just a small portion of Australia’s two million SMEs took part in this new initiative and consider hiring a young Australian it will be a big success. There are nearly a quarter of a million young Australians out of work, so it is great to see SMEs becoming part of the solution to youth unemployment.”
Reed is urging small businesses to support the program.
“With millennials set to define the future of the Australian workforce, we encourage small businesses to be a part of this internship program, and do what they can to create opportunities for the younger generation,” he concludes.