Tonight’s Federal Budget is a step in the right direction to recognise and support growth for Australia’s 54,000 mid-size businesses.
But there is opportunity for more to be done to ensure the engine room of Australia’s economy is supported to succeed in innovation and access new markets; in turn supporting the Government’s economic plan for growth and jobs.
“The smaller end of Australia’s mid-size sector will start to feel real support as the revenue cap on a reduction in the corporate tax rate and many other incentives is increased to $10 million this year, and higher over the next ten years. Considering Australia’s mid-size businesses generate revenue of up to $500m, there is a significant portion of the sector that remains under represented in the national debate.
“This year’s Federal Budget announcement is a step in the right direction with a progressive plan that will create a sustainable path to future growth. But we will continue to call for a Minister for Mid-size Business to create a simpler life for the engine room of the economy, Australia’s 54,000 mid-size businesses,” said Greg Keith, CEO of advisory firm Grant Thornton.
The real wins for Australia’s mid-size business in this year’s federal budget include:
Support to access to new markets:
“The Federal Government has provided mid-size businesses with more confidence to invest in opportunities in the Asia-Pacific region through the tariff reductions in the Trans Pacific Partnership Agreement. This will allow mid-size business to continue to grow and deliver economic prosperity as they are supported to develop business opportunities in new markets.
“Further support is needed to help mid-size businesses protect their IP as they enter overseas markets, navigate products and standards, as well as to access networks in the Asia Pacific region, market intelligence and penetrate supply chains.
“Mid-size businesses are best-equipped to accelerate in the Asia-Pacific region, but don’t have the deep pockets of the top end of town to navigate the challenges of entering new markets, so we will continue to advocate for more support for mid-size business looking for regional growth,” said Mr Keith.
Deliver a clear vision for a simpler tax system to promote growth:
We welcome the initiatives announced in this year’s Federal Budget that aid in reducing red tape burden and work toward reducing the corporate tax rate, making us more competitive on a global stage.
Invest in Australia’s mid-size innovators:
“Mid-size businesses are generally more nimble than big business and have sufficient resources to pursue innovation and make ideas come to life. Supporting mid-size business to innovate will maximise the impact on growth in business revenue and employment. We are pleased the Government is investing in innovation, that will see mid-size businesses flourish,” said Mr Keith.
“A Minister for mid-size business will unlock growth potential for mid-size business: the largest sector of Australia’s economy which contributes a combined annual turnover of $1.1 trillion. They’re the most likely to succeed and deliver even more than they already do to national growth and we will continue to advocate for their growth to be supported,” said Mr Keith.
A responsible economic plan outlined in this year’s Federal Budget for a stronger diversified economy bodes well for Australia’s mid-size business as innovation and growth incentives offered to small business are extending into the mid-size sector.
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