As Western Australia continues to navigate the economic turbulence brought on by global and domestic challenges, the government has rightfully introduced a suite of relief measures aimed at supporting businesses. However, advocates within the sector argue that these measures will be futile if not paired with better regulation and constructive policy enhancements. It is imperative to delve deeper into this argument to understand why economic relief and effective regulation must go hand in hand.
Government Relief Measures: A Helping Hand for Business
The Australian government has introduced numerous relief measures targeting businesses facing financial hardship. One notable initiative is the Australian Taxation Office’s (ATO) free online learning resource, “Strengthen Your Small Business,” which aims at equipping businesses with the knowledge to manage taxes, superannuation, and cash flow more effectively. This resource offers over 20 short courses, each designed to aid businesses at various lifecycle stages, structures, and industries.
In addition to educational resources, the government has rolled out several other support measures. These include a trial independent review process for small businesses in disputes with the ATO, expanded access to free advice through the tax clinic program, and extended deadlines for amending tax returns. Furthermore, targeted energy bill relief of up to $650 for about one million businesses, a $392.4 million Industry Growth Program, and the Small Business Energy Incentive—which offers an additional 20 per cent tax deduction on energy-efficient spending—are all designed to foster business innovation and growth.
Moreover, there are allocations of over $60 million in government funding to bolster businesses’ cybersecurity and digital capabilities. Free mental health support and the $20,000 instant asset write-off further ensure that businesses have the necessary tools and services to thrive in these challenging times.
The Need for Better Regulation
While these measures undoubtedly provide vital support, they must be complemented by better regulation to be truly effective. Luke Achterstraat, CEO of the Council of Small Business Organisations of Australia (COSBOA), and Chris Lamont, NSW Small Business Commissioner, have both stressed the significance of improved regulatory frameworks in bolstering business success.
Businesses frequently grapple with the cumulative impact of constantly changing rules and requirements. Red tape and unnecessarily complex regulations often inhibit business growth or force them out of the market altogether. Lamont’s speech at COSBOA’s National Small Business Summit highlighted the problems caused by an excess of regulation, emphasising that it often results in stagnation or exit for too many businesses.
To address this, Lamont advocates for the development of better regulations informed by independent business impact statements. Such statements would ensure that new regulations consider the unique needs, constraints, and contributions of small businesses, ultimately aiming to reduce compliance costs for both entrepreneurs and the government.
Streamlined Regulations for Sustainable Growth
Recent surveys underscore the frustrations of businesses mired in substandard or redundant regulations. The complexity and sheer volume of regulatory requirements can be overwhelming, hindering business growth and innovation. Streamlined regulations, developed with direct input from small businesses, can remove these barriers, allowing businesses to thrive unhindered by bureaucratic constraints.
At Peel Finance Brokers, we understand the intricate balance required between economic relief and effective regulation. Our expert team is dedicated to providing bespoke financial solutions that consider both the immediate relief measures available and the broader regulatory landscape. Contact us today to discover tailored funding solutions that can help your business not only survive but flourish.
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- Navigating Business Financing Options During Economic Downturns in Western Australia
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.