The government of Labor Prime Minister Julia Gillard is not only increasingly out of favour with voters, small business is also less than enamoured.
As opinion polls show declining support for Labor, there are signs that small businesses have also had enough, feeling they have become the “forgotten majority”.
A survey by accounting software firm MYOB, found that less than a quarter (23 per cent) of small and medium sized enterprises (SMEs) would vote for the Gillard government if an election was held in the near future.
“The reason for the dissatisfaction is very apparent,” MYOB CEO Tim Reed said, releasing the survey findings yesterday.
“Australian SMEs have become the forgotten majority, with no action from the federal government on any of the reforms that are important to them.”
A special report in the MYOB’s April business monitor of 1000 business owners found they want immediate action on a lower small business tax rate (71 per cent of respondents), a simplified Business Activity Statement (64 per cent) and assisted business finance (51 per cent).
Mr Reed said the government keeps pointing to the lowering of the company tax rate from 30 per cent to 29 per cent as a major reform, but this doesn’t apply to over 70 per cent of Australian businesses that do not operate under a company structure.
“It seems that they have lost touch with the real demographics of Australian business,” Mr Reed said.
“Never before have we received such a clear message from SMEs on what they want from Canberra. These are not outrageous demands.”
Quick action by the federal government now could address the two-speed economy issue and rekindle economic growth among 96 per cent of businesses, being the SME sector, he said.
Mr Reed did not believe dissatisfaction with the government stemmed from the ongoing debate over a tax on carbon, with the research finding opinion divided – 31 per cent saying was important versus 36 per cent saying it was unimportant.
In an interview earlier this month, Mr Reed told reporters that a carbon tax would provide business certainty.
“There are probably a lot of people out there who believe it might be the right thing and it’s a necessary thing, but are concerned about the way it is implemented, that it might put on additional red tape.”
