Almost 60% of SMEs unhappy with support from Federal Government

Almost six in ten small and medium-sized businesses are dissatisfied with the support they receive from the federal government, according to a recent report by business software provider MYOB.

This is the highest level of dissatisfaction in more than eight years (since March 2004).

One of the overriding reasons cited for this increase in dissatisfaction was the carbon tax, which went into effect on 1 July. Two-thirds of small and medium-sized business owners wanted to see the tax abolished. From the business owner’s point of view, it’s created a double loss in revenue.

First, even though the carbon tax targets the biggest polluters, it increases the price of every day necessities like food and energy. This in effect creates a ripple economic effect because consumers buy less, hence businesses suffer. 

The second hit to the bottom line for many businesses is an increase in expenses.

The Bathurst-based Western Research Institute noted that communities which are heavily reliant on manufacturing would be impacted the most by the carbon tax, surmising that retailers would “continue to feel the strain,” in spite of the fact that compensation is being offered to certain households.

The survey consisted of 1,004 business owners and managers. Only 17 per cent reported being satisfied with government support. The survey also found ‘little improvement’ in revenues for businesses since March. 

 

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