Industry groups and business advocates have outlined the policies they'd like to see adopted by the next government with the 3 May election date now locked in.
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The Australian Chamber of Commerce and Industry (ACCI) stressed that both major parties should be squarely focused on economic reform ahead of the May election.
“The absence of serious economic reform over many years presents an ongoing deadweight on our economy, and we cannot afford further procrastination,” Andrew McKellar, chief executive of ACCI, said.
“The combination of deepening domestic challenges and worrying international developments underlines the need for serious economic reform.”
ACCI sent political leaders a practical and meaningful set of recommendations for economic reform that will spur investment and productivity.
Some of these included implementing comprehensive tax reform and lowering the company tax rate for all businesses to 25 per cent.
It also wants to see the definition of small business in the Fair Work Act changed to fewer than 25 employees and permanently setting the instant asset write-off threshold to $50,000.
Paul Robson, chief executive of MYOB, said with 5 million Australians employed by small and mid-sized businesses, measures that help SMEs thrive and grow will have an impact on the whole nation.
"There is a ‘cost of doing business’ that is challenging this community," Robson said.
MYOB’s latest Bi-Annual Business Monitor survey of over a thousand SMEs showed that 40 per cent would vote for sector-specific stimulus to counteract the effects of inflation in the federal election.
Robson said cash flow remains a key area of concern for businesses, with the cost of utilities topping the list of stressors for SMEs.
Small business owners and operators would like to see a reduction in the company tax rate to 20 per cent for small businesses, simpler GST and BAS reporting processes and a permanent instant asset write-off.
“Small and mid-sized businesses play a vital role in our economy, contributing more than half of Australia’s GDP. Consistency and predictability are key to sustaining the invaluable role SMEs have carved into the economy," Robson said.
The Business Council of Australia (BCA) urged the major parties to prioritise policies with a long-term focus on making Australia a more competitive economy and an attractive place to do business.
Bran Black, chief executive of BCA, said this would ultimately help lift productivity, increase wages and improve Australian living standards.
“Australia is facing major challenges to our quality of life, and so we need this election to be about bold policy solutions that make us a more dynamic and competitive economy, so we can attract the investment we need to secure our long-term prosperity,” Black said.
“As a priority, both parties must put forward a long-term economic plan for Australia to deal with the challenges facing the economy."
The BCA said the Productivity Commission should be tasked with monitoring the burden of regulations on business in comparison to global peers and providing annual recommendations to Treasury on the reduction of regulation.
It also called for more flexible workplace laws and more targeted investment incentives to support trade and investment in innovation.
Black added that parties needed to commit to sustainable government spending, given the potential inflationary impact that more public spending could have on the economy.
"What will be critical is that both parties commit to sustainable spending that drives productivity and does not put pressure on inflation,” Black said.
“We need to see fiscal discipline during the campaign because additional spending poses a risk to the sustainability of the budget to fund essential services in the long term.”