CPA Australia’s 2020-21 federal budget submission proposes the government implement a suite of both short and longer-term fiscal measures that will help to stimulate the economy.
Both official and private sector data points to 2020 being another challenging year for Australia. Preliminary results from our organisation’s Asia-Pacific Small Business Survey also supports this view, with 40 per cent of Australian small business respondents expecting the economy to contract in 2020.
Australia is also facing challenges such as ever-increasing international competition and an ageing population, as well as the recent bushfires, the ongoing drought and the potential economic risks associated with the spread of coronavirus.
Recommendations include the federal government:
- increases its spending on repairs, maintenance and preservation of public assets, especially in areas impacted by recent fires and drought
- fund a business advice voucher system for bushfire affected businesses of $1,000 per business
- introduces a broad-based investment allowance for businesses
- removes many of the government fees imposed on small business
- funds a holistic review of the regulatory frameworks for financial advice to ensure regulation is fit for purpose and to reduce overlaps and costs
- introduces a 40 per cent savings income discount for individuals and non-business-related net interest income and net residential rental income
- funds the development of educational material and other programs to assist small business build their digital capability, management skills and understanding of overseas markets, and delivered by professional advisers
- funds programs that encourage those new to business to seek professional advice. Options include the government giving new businesses a voucher that can be redeemed for professional advice from, for example, a registered tax agent
- makes the current instant asset write-off a permanent feature of the tax system
- develops policies that further encourage the development and deployment of technologies that will play a role in combatting global warming. This should cover several policy areas including education, energy and science.
The full submission can be accessed here.
