Government’s small business strategy ‘fails to deliver’, says CPA Australia

CPA Australia has revealed the Albanese government’s newly launched business strategy has again failed to provide Australian businesses with effective and efficient support.

On Monday, the government announced the release of Australia’s first National Small Business Strategy in an attempt to make it easier for small businesses to “operate, innovate and thrive.”

According to the government, the strategy would lay out how different levels of government would work together to support the nation’s 2.5 million small businesses.

Minister for Small Business Julie Collins said the strategy was her commitment to drive a co-ordinated, collaborative and cohesive national approach to small business policies and support.

“Small businesses provide jobs, deliver services, drive innovation and productivity, and help define communities and the Albanese Labor government is committed to seeing them thrive,” she said.

“The strategy is a collective vision for the small business sector and our shared commitment across tiers of government to work together.”

However, Ord said despite the effort it was another missed opportunity to properly engage with business and create a clear and coherent vision for growth.

“Small business operators are looking for a substantive strategy from the government – one where they can see clear benefits for themselves and the economy as a whole, but this failed to deliver,” he said.

“The fact that the main takeaway from the National Small Business Strategy is that different levels of government should work more closely together epitomises the problem.”

Minister Collins noted the strategy was developed following a meeting in June 2024 where it was agreed that better co-ordination was needed to support small businesses and to advance a national strategy.

“The National Business Strategy’s development has involved close collaboration between the Commonwealth, state and territory governments, as well as key stakeholders,” she said.

“Small businesses comprise around 97 per cent of all businesses in Australia, contribute approximately $590 billion to the economy annually and employ around 5.4 million people. The government is delivering $640 million in targeted support for small businesses to ease pressure, support small businesses to grow, and level the playing field.”

Ord noted the “failed” strategy directly reflected the reform the government needed to make towards economic prosperity, which CPA called for in its pre-budget submission.

“A massive cultural shift is needed from all levels of government – from viewing additional regulation as the default solution to embracing practical approaches such as education and better enforcement of existing laws, at the same time, maintaining the necessary safeguards for businesses and consumers.”

“We need governments that foster economic growth, not ones that assume they can regulate the economy into prosperity.”