Scrap the carbon tax: small business

Small businesses want an end to red tape and also want the carbon tax to be scrapped. Source: Supplied

Overworked: Australians work some of the longest hours in the developed world. Source: Supplied

SMALL business firms are demanding urgent relief from bureaucratic red tape and the scrapping of the "deeply unpopular" carbon tax, a national survey of 1,005 companies has found.

As the Gillard Government appointed its fifth Small Business Minister in less than two years, more than 50 per cent of firms expressed disappointment with the level of government support for the "engine room" of the economy.

Cutting the amount of GST paperwork - and scrapping the carbon tax - remain high priorities for small business, according to the annual MYOB survey.

They are also demanding greater investment in transport infrastructure around the cities and a reduction in payroll tax.

While the carbon tax is more popular with voters than it was before its July 2012 introduction, 63 per cent of those surveyed see its abolition as a high priority.

Tim Reed, the CEO of MYOB, said the high level of unrest reflected business concerns over the direction of the Labor Government.

"It's more a signal of overall confidence in this Government to make good macro policies," Mr Reed said.

"The Government has lost the political battle on carbon tax in the minds of business."

The percentage of small businesses who want the carbon tax scrapped - 63 per cent - is higher than it has ever been, according to MYOB.

This follows a News Limited article last week that reported insolvency professionals and business executives claim the carbon tax is contributing to a record number of businesses going into administration. This is based on Australian Securities and Investments Commission data - comparing voluntary administrations for the 12 months to December 31 2012, compared to 2011.

"Small businesses know they are paying the price of the Government's carbon tax," the Opposition's climate change spokesman, Greg Hunt, said.

"It is no surprise this issue is near the top of the list of concerns for small businesses as their increase in power bills has been proportionally much higher, and they have limited ability to pass on the cost."

A spokesman for Climate Change Minister, Greg Combet, said: "The Gillard Government has provided small business with tax relief and assistance in making improvements to energy efficiency."

"We increased the small business instant asset write off to $6,500, funded by carbon price revenue.

"The Government has also established the Energy Efficiency Information Grants program which provides grants to industry associations to deliver practical, tailored energy efficiency information to small and medium enterprises so they can make savings on their energy costs."

 

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