With more than 54,000 mid-size businesses contributing to Australia’s economy compared to just 1,600 large corporates, they’re still under-represented in the national debate and this year’s federal budget shows no sign of reprieve.
Innovation and growth incentives are offered to small business, while large corporates already have a seat at the table; leaving mid-size businesses - best equipped to accelerate - left cap in hand, swimming in red tape and little support for growth.
“We’re once again calling for a Minister for mid-size business to create a simpler life for the engine room of the economy, mid-size business,” said Greg Keith, CEO of advisory firm Grant Thornton.
In this year’s budget we urge the government to deliver on these key incentives:
Invest in Australia’s mid-size innovators:
Mid-size businesses are generally more nimble than big business and have greater resources than small business to pursue innovation and make ideas come to life. Supporting mid-size business to innovate will maximise the impact on growth in business revenue and employment.
Support access to new markets:
Let’s give mid-size business the confidence to invest in opportunities in the Asia pacific region so they can continue to grow and deliver economic prosperity.
Right now the EMD grant cuts out at the most crucial point for mid-size business. We would like to see this threshold lifted, to ensure mid-size businesses are supported to develop business opportunities in new markets and take advantage of recent free trade agreements.
Deliver a clear vision for a simpler tax system to promote growth:
We’re also asking for three key tax initiatives critical to mid-size business given they’re not entitled to small business tax concessions or have the resources of the large corporates to navigate the complex tax system.
Simplify the tax system, reduce red tape burden on multitude of state based taxes and lower the corporate tax rate for mid-size business. We want to see a simpler tax system so that mid-size to go back to focusing on their core business.
“With a combined annual turnover of around $1.1 trillion; if Australia’s mid-size businesses were a state; their economy would be larger than Queensland. The time is now to support their growth,” said Mr Keith.
“A Minister for mid-size business will unlock growth potential for Australia’s largest sector of the economy. They’re the most likely to succeed and deliver even more than they already do to national growth,” said Mr Keith.
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For more information please contact:
Helina Lilley, National Public Relations Manager
T +61 2 8297 2421, M 0437 725 520, E helina.lilley@au.gt.com
