Backing Small Business: A Fair Go in the Next Budget

Australian small businesses are still powering jobs, innovation and local communities, but many are under growing pressure from rising costs, skills shortages and complex regulations. Owners are working longer hours for thinner margins, often putting personal savings and wellbeing on the line just to keep the doors open. At the same time, successive governments have acknowledged that small business is central to productivity, employment and economic growth. The next Federal Budget is a critical opportunity to move from short term fixes to a more practical, long term partnership that helps small businesses not just survive, but thrive.

Across COSBOA’s budget wish lists, small business surveys and recent economic reports, several clear priorities keep appearing from the sector. These priorities reflect the day to day reality in small shops, trades, professional services, hospitality venues and local start ups across Australia.

The most urgent ask is relief from the steadily rising cost of doing business, especially energy, insurance, rent and other key inputs. Many businesses are seeing costs rise faster than revenue, leaving little room for wage growth, investment or owner income. Small business groups are calling for more targeted energy efficiency grants and rebates, fairer energy pricing, and action to improve access to reasonably priced business insurance. For many, genuine cost relief would be the difference between holding onto staff and cutting hours or services.

Simple, stable tax settings are essential if small businesses are to confidently invest in new equipment, technology and vehicles. COSBOA and others are urging government to make a higher instant asset write off permanent, with some proposals suggesting a cap of up to 150,000 dollars per asset. There are also calls to reduce the small company tax rate and provide fairer treatment for sole traders and partnerships, who often miss out on targeted business concessions. Certainty around these measures would help businesses plan multi year investments rather than waiting to see what each Budget might change.

While every government promises to cut red tape, owners regularly report that compliance costs continue to rise and take them away from serving customers and leading their teams. Small business advocates are pushing for mandatory small business impact assessments for new laws, and a serious clean up of outdated or duplicated regulations across levels of government. Practical ideas include a “flying squad” to fix broken processes, smarter digital portals for agencies like the ATO, Fair Work and ASIC, and simplified licensing and reporting for very small employers. If done well, genuine red tape reduction would free up time and cash flow that can be redirected into growth, innovation and staff development.

Many small businesses are still struggling to attract and keep the staff they need, particularly in hospitality, trades, regional areas and care services. Employers are asking for stronger vocational pathways that reflect small business needs, better support for apprentices and trainees, and migration settings that help fill genuine skill gaps where local supply is limited. The way small businesses employ people—through a mix of part‑time, casual, contractor and seasonal roles—also needs to be reflected in workplace relations policy. A workforce system that works for small employers will make it easier to maintain service standards, grow opening hours and expand into new markets.

Customers now expect digital, secure and convenient experiences, but many small businesses lack the time, skills and capital to keep up with rapid technological change. COSBOA and others support the reinstatement and expansion of technology, skills and energy “boosts” that help small firms adopt digital tools, e commerce, AI and automation. There is also growing concern about cyber security, with small businesses often targeted but under resourced to respond. Targeted, easy to access support for digital adoption and cyber resilience would lift productivity while protecting businesses and their customers.

The Federal Government has outlined a National Small Business Strategy and a suite of measures to “back small business”, including an instant asset write off, energy efficiency grants, digital capability programs and procurement reforms. There is also ongoing work to streamline licensing, planning and zoning, and to support skills development through apprenticeships, training subsidies and workforce initiatives. These measures are welcomed, but many are time limited, modest in scale and difficult to navigate for busy owners. COSBOA’s recent budget responses describe previous packages as underwhelming and a “missed opportunity” to fully back small business investment in a slowing economy.