Small businesses are the heartbeat of Australia’s economy, pumping out jobs, innovation, and competition. But right now, they’re gasping for air.
With the Federal Government’s 2025-26 Budget looming, the Council of Small Business Organisations Australia (COSBOA) is sounding the alarm: neglect SMEs, and the nation’s economic engine could grind to a halt, costing billions in ways we can’t quite pin down.
The pressure is suffocating. Rising costs, tangled red tape, and a tax system that feels like a punishment rather than a boost are squeezing small business owners dry. COSBOA CEO Luke Achterstraat doesn’t mince words: “SMEs are running on empty. If this budget doesn’t deliver real support, we’re looking at more shuttered shops, pricier goods, and an economy that’s weaker for everyone.” The risk is vague but massive—think stubborn inflation and fading living standards. The exact dollar figure is anyone’s guess, but every lost hour or pinched dollar hits SMEs where it hurts.
So what’s COSBOA pushing for? A budget that puts small business first, starting with tax reform that rewards instead of penalizes. They want a permanent $150,000 Instant Asset Write-Off so you can grab that new equipment or software without a tax gut-punch. They’re also after a payroll tax overhaul—simpler, fairer rules across states to stop choking job growth. Add to that a 20% tax deduction for tech upgrades and some relief for startups, and you’ve got a system that might actually help you grow. “Taxes should spark investment and hiring, not snuff it out,” Achterstraat says.
Then there’s the red tape mess. Compliance is a time thief, pulling you away from customers and growth. COSBOA’s fix is bold: make every new rule prove it won’t hurt SMEs, unleash a task force to shred outdated regulations, and streamline clunky systems like the ATO or Fair Work. They also want workplace laws that let casuals, contractors, and sole traders thrive. “Every hour lost to paperwork is an hour not spent building your business,” Achterstraat notes. “Cutting that burden isn’t a luxury—it’s survival.”
Don’t just sit tight for the budget, though. You can act now. Tell your local MP what keeps you up at night—COSBOA’s got your back at cosboa.org.au. Squeeze every cent out of current tax breaks for tools before they vanish. Take a hard look at your admin load—trim the fat and reclaim your week. And lean on COSBOA’s network for free tips and a louder voice in Canberra. These moves could keep you afloat no matter what the budget brings.
The stakes are sky-high. If SMEs crumble, inflation digs in, competition wilts, and jobs dry up. “This budget’s a make-or-break moment,” Achterstraat warns. “Fuel us with workforce help, energy cost relief, cyber defenses, and fair payment rules, and we’ll drive Australia forward. Let us stall, and the fallout will sting us all.” The 2025-26 Budget could be your lifeline—or a missed chance. “We can’t keep limping along,” he adds. “Give SMEs the spark we need, and we’ll power the future. Ignore us, and the cost will echo for years.”
The full COSBOA pre-budget submission can be accessed here.
ALSO READ: COSBOA calls out ATO’s proposal to hit SMEs with new penalties
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