Tax tops small business survey

Tax is the number one State government issue for small businesses in Western Australia, a survey by the Combined Small Business Alliance has found.

Other issues that ranked highly include industrial relations, training for small business owners, and government purchasing policies (see table).

The retail trading hours issue, which has generated a lot of political heat over the past 18 months during the debate over deregulation, ranked relatively low (ninth) as an issue.

Similarly, occupational, health and safety and workers’ compensation and insurance also ranked low on the list despite attracting substantial controversy as a result of rising costs and new regulations.

Combined Small Business Alliance chief executive Oliver Moon said the survey, completed last year by 78 small business organisations, illustrated the difficulty of identifying issues of concern.

“You don’t always know where their priorities lie,” he said. “Occupational health and safety … we thought would be higher, because of the costs and the new laws, and the surprise of them all, workers comp, a hell of a cost impost on small business [ranks] 20th.”

Conversely, concern about small business training programs ranked surprisingly high (third).

Mr Moon said he was also surprised that the issue of government procurement (fourth) ranked so highly.

The Gallop Government has centralised government purchasing and anticipates full-year savings of $100 million once the new system is fully implemented.

Mr Moon said concern over government purchasing came particularly from smaller businesses in regional WA, which feared they would miss out on their all-important government contracts.

The survey results are good news for the State Opposition, which has been campaigning heavily on its plans to cut taxes.

A particular concern for small businesses was the Gallop Government’s move to a single rate of payroll tax, which simplified the system and addressed the problem of high marginal rates but led to an estimated 4,000 small to medium-sized businesses paying more in payroll tax.

Other tax issues causing concern to small business groups include power and water charges, stamp duty increases and licensing fees.

The Government has sought to retrieve lost ground on the tax issue by apologising for increases in its third (2003) budget and cutting taxes during 2004.

In the area of industrial relations, issues raised by survey respondents include State-based workplace agreements, which are widely considered inflexible, the impact of unfair dismissal laws and the impact of penalty rates on 24/7 businesses.

The Coalition intends to reverse some of the Gallop Government’s industrial relations policies, in particular by reinstating flexible workplace agreements.

Opposition leader Colin Barnett has also pledged to use government purchasing to actively support small Western Australian businesses.

“Within the newly created Department of Commerce there will be a special office of government procurement and we are going to use that as an effective way to help build the Western Australian business community,” he told the 500 Club last year.

The survey respondents called for an increased commitment to training for small business owners and operators.

The survey respondents also said more needs to be done to tackle the shortage of skilled labour.

KEY ISSUES*

• Taxes and charges
• Industrial relations
• Training for business owners
• Government purchasing
• Red tape
• Shortage of skilled labour
• Staffing/apprentice incentives
• Law and order
• Retail trading hours
• Occupational health & safety
• Infrastructure planning
• Market power of big business
• Fuel costs
• Regional transport costs
• Power supply
• Liquor licensing
• Tourism
• Poker machines
• Public transport
• Workers’ compensation & insurance

Source: Combined Small Business Alliance

*In order of preference