CPA Australia says the next federal government must act decisively to boost small business innovation, competitiveness and productivity in Australia.
The accountants’ association claims that without an urgent change of course, Australia’s economy will continue to underperform, and small businesses will fall further behind their international counterparts.
“Australia’s small businesses are held back by insufficient government support for digital adoption and excessive red tape,” CPA Australia’s Business Investment and International Lead, Gavan Ord said.
“We need the government to give small businesses the backing they need. This will require a significant culture shift, but it is desperately needed.”
According to the CPA Australia’s latest Asia Pacific Small Business Survey Australia ranks 10th out of 11 markets in the Asia-Pacific for small business growth. The survey states that only 42 per cent of Australian small businesses reporting growth over the past 12 months compared to an average of 64 per cent across the region.
The survey collates feedback from over 4200 small businesses across 11 Asia-Pacific markets, and this year the survey paints a worrying picture for Australia’s small businesses.
Only 35 per cent of Australian respondents expect the national economy to grow in 2025. This compares with an average of 67 per cent across the Asia-Pacific, placing Australia last out of the 11 markets.
Australian small businesses were also the least likely to increase their headcount last year, with just nine per cent creating new jobs, while across the region 33 per cent grew their workforces.
“This worrying sentiment is fuelled by a sense that Australia’s overall economic prospects are weak,” Ord said.
“There is a lack of confidence in the ability of federal, state and territory governments to foster economic growth and improve conditions for small businesses to flourish.”
CPA Australia called on the next federal government to:
- Prioritise reforms that reduce the regulatory pressure on Australian businesses.
- Create a more business-friendly environment through improved policy development.
- And substantially increase investment in digital support services to help small businesses realise their growth potential.
Ord added: “Successive governments have failed to strike the right balance between innovation and regulation, making Australia a less attractive place to do business. A significant cultural shift is needed at all levels of government to prioritise economic growth rather than defaulting to regulation to address every problem.
“Businesses understand the need for well-designed regulatory frameworks, but government instinct for red tape has swung the balance so far that even the most creative and innovative of businesses are struggling to prosper.
“We encourage the next government to focus on fostering economic growth, and not assume it can regulate the economy into prosperity.
“Australian businesses have fallen well behind our friends in Asia and a comprehensive plan to urgently address this is needed from the next government.”