Australia’s small business sector is sending out a distress signal, and COSBOA CEO Luke Achterstraat isn’t mincing words about what needs to happen next.
Recent economic data has prompted what Achterstraat describes as “a wake-up call for policymakers,” highlighting an urgent reality that can no longer be ignored: the businesses that form the backbone of Australia’s economy are buckling under mounting pressure.
“The data paints a clear picture of an economy under pressure; with business owners bearing the brunt of rising costs, policy uncertainty and falling consumer demand,” Achterstraat said, reflecting concerns that have been building across the small business community for months.
The ground truth
For COSBOA, the nation’s peak body representing small business interests, the latest figures aren’t just statistics, they’re confirmation of a crisis that’s been brewing at grassroots level.
“It’s confirmation of what we’ve been hearing on the ground,” Achterstraat explained, pointing to reports flowing in from small business operators across the country who are struggling to maintain momentum in an increasingly challenging environment. “Private sector investment is stalling. Productivity is stagnant. Small businesses are doing everything they can, but the settings are not helping them to grow.”
Recognizing that small businesses are “the core drivers of employment, competition and innovation in Australia,” COSBOA is pushing for immediate government intervention to address what Achterstraat sees as policy settings that are actively working against business growth.
The organization’s response comes in the form of its Fair Go for Small Business campaign – a comprehensive policy platform designed to “unlock small business potential and restore national productivity” through what COSBOA describes as “bold yet practical reforms.”
The 7-point rescue plan
COSBOA’s prescription for Australia’s small business crisis centers on seven key policy changes that Achterstraat and his organization believe could transform the operating environment for millions of business owners:
Tax relief that matters
Reducing the small business company tax rate from 25% to 20%
This five percentage point reduction represents more than just a number change: it’s about putting money back into the hands of business owners who are currently choosing between growth investments and survival.
Investment certainty
Making the instant asset write-off permanent
Rather than the current system of temporary extensions and uncertainty, COSBOA wants businesses to have permanent access to immediate tax deductions for asset purchases, providing the certainty needed for long-term planning.
Regulatory reform
Smarter, not heavier, regulation
The focus here is on reducing compliance burden without compromising standards – creating regulatory frameworks that work with small business rather than against them.
Skills development
Flexible and fit-for-purpose training pathways
Recognizing that small businesses need different approaches to skills development than large corporations, this reform focuses on practical, accessible training solutions.
Digital transformation
Balanced, supportive digital and privacy reform
As businesses navigate increasing digitization requirements, COSBOA wants policy settings that support rather than hinder digital adoption while maintaining appropriate privacy protections.
Healthcare integration
Recognition of small health businesses in health system reform
This targeted reform acknowledges the critical role that small healthcare providers play in Australia’s health system and seeks to ensure they’re not overlooked in policy development.
Energy transition support
Tangible support for the energy transition and net zero goals
Rather than leaving small businesses to navigate the energy transition alone, this reform calls for practical support to help businesses adapt to new energy realities while meeting environmental objectives.
The stakes couldn’t be higher
Achterstraat’s message comes at a critical juncture for Australian economic policy. With productivity growth stagnant and private sector investment faltering, the traditional engines of economic growth are showing signs of serious strain.
The COSBOA chief’s assessment suggests that without decisive policy intervention, Australia risks entering a prolonged period of economic underperformance that will impact not just business owners, but every Australian who depends on the jobs, innovation, and competition that small businesses provide.
The ball is now firmly in the government’s court. The question is whether policymakers will heed Achterstraat’s wake-up call and implement the reforms that could revitalize Australia’s small business sector – or continue with policy settings that are, in his words, “not helping them to grow.”
For Australia’s economic future, the answer to that question couldn’t be more important.
For more information on COSBOA’s Fair Go for Small Business campaign, visit: cosboa.org.au
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