From a permanent $150k asset write-off to AI literacy support, COSBOA has a five-point productivity blueprint, and it’s aimed squarely at Canberra.
What’s happening: In her first public statement as CEO of the Council of Small Business Organisations Australia (COSBOA), Skye Cappuccio has set out five structural reforms she says are essential to lifting national productivity.
Why this matters: Australia’s approximately 2.6 million small businesses contribute roughly a third of national GDP and employ more than five million people, according to COSBOA.
Australia’s peak small business body says the national productivity conversation is missing its most important piece: the 2.6 million small businesses that, according to COSBOA, generate close to a third of the country’s GDP and employ more than five million Australians.
“Productivity is central to the national economic discussion,” Ms Cappuccio said. “In these early weeks, I have been listening closely to what small businesses need right now to invest with confidence, adopt new technology, attract skilled staff and plan ahead. If Australia is serious about productivity, we need to be clear about what enables small businesses to perform at their best.”
Certainty over short-term fixes
At the top of COSBOA’s list is investment certainty. Ms Cappuccio said unclear and short-term tax settings are causing small businesses to delay or cancel spending on the equipment and systems that drive output.
“Capital investment remains one of the most direct drivers of productivity,” she said. “A permanent $150,000 Instant Asset Write-Off would provide the certainty small businesses need to invest in the tools, software and equipment that directly increase output. When settings are temporary or unpredictable, investment decisions are deferred. Certainty enables planning.”
The position aligns with COSBOA’s broader budget submission, which also calls for a lower small business company tax rate and incentives for unincorporated businesses to reinvest earnings.
AI, cyber and the digital gap
Ms Cappuccio said artificial intelligence is already being put to practical use across the sector, but that many small businesses lack the support to adopt it meaningfully.
“Small businesses are already using AI in practical ways, from marketing and customer engagement to back-office processes,” she said. “What they need is practical support: AI-enabled advisory tools, targeted digital literacy programs and proportionate regulation that encourages responsible adoption without creating additional complexity. Reducing administrative load is one of the clearest pathways to lifting productivity.”
On cyber security, she said digital growth cannot happen without digital protection. “Small businesses operate in increasingly complex digital environments, often without in-house IT resources,” Ms Cappuccio said. “Long-term investment in programs such as Cyber Wardens, alongside right-sized privacy regulation, is essential to protect productivity gains and maintain trust.”
Skills, not just technology
Workforce capability was identified as another critical but underappreciated lever. Ms Cappuccio pushed back on the idea that small businesses are simply scaled-down versions of large corporations, arguing that training and workforce policy must reflect how they actually operate.
“Small businesses are not large corporations on a smaller scale. They require flexible, fit-for-purpose training pathways and workforce settings that reflect how they actually operate,” she said. “Persistent skill shortages across sectors are directly constraining growth, delaying expansion and limiting output.”
COSBOA is calling for improved recognition of qualifications across state and territory borders, streamlined migration settings to address critical shortages, and targeted incentives for businesses that invest in training and apprenticeships.
“Productivity depends on having the right people with the right skills at the right time. Without workforce capability, investment in technology and systems cannot deliver its full potential,” Ms Cappuccio said.
Cutting the compliance load
Rounding out COSBOA’s five priorities is the structural cost of regulation itself. Ms Cappuccio pointed to energy costs, insurance premiums, payroll tax complexity and overlapping compliance requirements as areas consuming time and capital that could otherwise support growth.
“Every unnecessary compliance layer reduces the capacity to invest and grow,” she said. “Reforms such as payroll tax harmonisation, targeted energy efficiency support, insurance market reform and mandatory Small Business Impact Statements go directly to improving business confidence and productivity.”
On the broader challenge, Ms Cappuccio’s message to policymakers was consistent: the sector is willing but being held back by settings that do not reflect the reality of running a small business.
“Small businesses want to invest. They want to innovate. They want to grow. But they need certainty, proportionate regulation and practical support,” she said. “If policy settings align with the operational realities of small business, productivity gains will follow, and so will broader economic strength.”
The full COSBOA pre-Budget submission can be accessed here.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
