Our submission puts forward a number of key policy recommendations, focusing particularly on the key pillars required for a more productive and dynamic small business sector. This focus recognises our current environment, which is one of a looming economic downturn.
Australia has experienced more than two decades of prosperity, driven by booming prices for mineral exports. With the mining boom behind us, however, we now face the real prospect of a sustained fall in living standards.
Apart from a deteriorating federal budget, the core of the nation’s economic problem is its failure to lift business productivity for much of the past 15 years. Sadly, this means that Australia’s businesses are collectively barely more efficient than they were at the start of this century.
Therefore our pre-budget submission is designed to carry a credible voice to Government with key recommendations that will help to stem this downward economic tide. These recommendations include:
Loan guarantee scheme: To help increase the availability of much needed affordable loan finance to the small business sector, we believe that the Federal Government should introduce a state-backed loan guarantee scheme.
Venture capital fund: We believe that the entrepreneurial environment in Australia can be improved with the introduction of a publicly supported venture capital (VC) fund.
Building an innovation system: Australia needs sound public policy to encourage innovation among small to medium enterprises. Government can play an important role by providing research and development support; enabling better linkages between cutting edge universities and industry; providing support to firms to adapt existing technologies and innovation; and encouraging firms to develop their ability to search for new options, evaluate them and successfully implement them.
Skills and human capital: To stem the tide of skills shortages, we are urging governments to consider the inclusion of enterprise training at all levels of the education system from early school years to further and higher education institutions.
Robust tax reform: We support the Government’s commitment to improving Australia’s tax system and will continue to advocate for holistic and robust tax reform based on measures to boost small business and SME productivity. We need to address the regressive regulatory burden imposed on small business and a positive advancement to rewarding entrepreneurial activity.
For more detail on the IPA’s pre-budget submission and recommendations go to http://bit.ly/1PVGJX7.
