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In a recent ABC Radio WA interview, Australian small business and family enterprise ombudsman Bruce Billson highlighted that while small businesses make up 98% of all businesses in Australia, their contribution to the economy is gradually declining.
Currently, small businesses contribute a third of GDP, two in five private sector jobs and much of Australia’s production.
Billson said that’s 5.36 million people relying on small businesses for their livelihoods. “In 2006, a third of GDP was actually 40%. That two in five jobs was actually more than two in four.”
He attributed the decline to the pandemic, where larger firms with more resources fared better; the increasing complexity of government regulations; and cost-of-living pressures, including rising super contributions, rent, energy and insurance costs.
“In the last full year of tax data, 46% of small businesses weren’t making a profit. This is a really challenging time,” said Billson.
#accountant #tax #business
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