COSBOA calls for tax cut and fair go for small business

Monday, 31 March - The Council of Small Business Organisations Australia (COSBOA) is calling on policymakers to cut the small business company tax rate and provide instant relief to the struggling small business sector, which is the engine room of our economy.

As the Federal Election kicks off, COSBOA wants the tax rate for small businesses with an annual turnover of $20 million or less reduced to 20% from the current rate of 25%. Other tax rates would stay the same.

COSBOA CEO Luke Achterstraat said small businesses were bearing the brunt of the cost-of-living crisis and suffocating red tape. National polling from independent pollster, Insightfully, identified broad voter support for the tax cut, with 69% of voters saying the cut would provide much needed relief for small businesses. In marginal seats, this increased to 76%.

“Small businesses are the engine room of the Australian economy and part of our social fabric. They are local cafés, where we catch up with friends. They are farming families that grow our food. They are the baker who is up at 3am every day to bake our bread. And behind every small business is a family, their staff and their customers.” Mr Achterstraat said.

“But small businesses are doing it tough. Like their customers, they’re bearing the brunt of the cost-of-living crisis, red tape is increasing, and staff are getting harder to find. Our research shows that without urgent change, 50% of small businesses are worried about surviving.

“That’s why COSBOA is calling for sensible changes to enable small businesses to keep prices stable, employ more staff and invest in innovation so they can compete with huge multi-nationals. Cutting the tax rate would have an instant impact and provide Australian small businesses with the fair go they deserve.”

Small businesses comprise 97.7% of all Australian businesses, employ more than 5.1 million people in our communities and contribute $500 billion a year to the economy. In regional and remote Australia, areas more reliant on small businesses, they are the heartbeat of the community.

“This tax cut would provide instant respite to Australian small businesses and let them focus on what they do best – running their businesses and serving our communities,” Mr Achterstraat said.

“Investment growth has been lacklustre in Australia, leading to reduced competition, higher prices and lower living standards. RBA research confirms lower tax drives new investment.”

“With this simple, sensible change Australian small businesses will be primed to thrive now and into the future, better able to contribute to the economy and their communities.”

For more information, visit www.cosboa.org.au

Other key insights:

• Net favourability of Anthony Albanese is lower among small business households, at -20 points (less that the national average of -16 points)

• Net favourability of Peter Dutton is higher among small business households at +0 points (higher than the national average of -22 points)

• Small businesses employ and educate more than 40% of Australian apprentices and trainees

• 40% of small businesses experience difficulty hiring and retaining staff

METHODOLOGY STATEMENT: Independent research agency, Insightfully, conducted research on Australian voters' attitudes to tax rates for small business from November 2024 to March 2025. A national online of n=2043 voters was 6-12 Dec 2024. The survey included a sub-sample boost of n=1224 voters in 12 key marginal electorates^. The survey method was mixed online / CATI (Computer Assisted Telephone Interview). Additionally, 2 focus groups among soft voters and 2 focus groups among small business owners were undertaken in marginal electorates in Brisbane and Perth in early December and again in Western Sydney and Melbourne this week (Wednesday March 26).

^Electorates in the key-seat survey sub-sample were: Bennelong, Curtin, Gilmore, Lyons, Menzies, Deakin, Ryan, Moore, Sturt, Cowper, Mackellar and Goldstein

Survey results on the Total sample represent the views of the Australian population to within a maximum margin of error ('MoE') of +/-2.2% (at the 95% confidence interval). And results on the Marginal Seat sub-sample represent the views of voters in those seats to within an MoE of +/-2.8%.

-ENDS-

For media enquiries or interviews, please contact Sofia Polak on sofia@akinagency.com.au or call 0434 275 449, or Anne-Louise Brown on anne-louise@akinagency.com.au or 0406 987 050.

About COSBOA

Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy. For more information, visit www.cosboa.org.au