Wed, 14th May 2008

Labor axes nearly $1 billion in business assistance

Steven Ciobo MP
Shadow Minister for Small Business,
the Service Economy & Tourism

The small business community has been completely gutted after the Rudd Labor Government’s Budget axed nearly $1 billion in business assistance programmes that help innovate and build entrepreneurship. These include:

- The $700 million Commercial Ready programme supporting innovation and commercialisation by providing around $200 million each year in merit-based grants to small and medium sized enterprises.

- Building Entrepreneurship in Small Business programme, worth $10.5 million which provides skills development, incubation and advisory services to small business owners and managers throughout Australia.

- The Small Business Field Officer programme strategically placed 65 officers at different locations across Australia to provide a one-stop-shop for small businesses wanting free advice on how to improve their business.

- The National Nanotechnology Strategy to give Australia world-class nanotechnology capabilities for business and careers within Australia.

- Industries Development programme increased opportunities for innovative, and market-oriented, industry development by providing small to medium-sized agribusiness with competitive funding and scholarships. Other elements of the programme encourage learning across agribusiness-related industries.

- The Global Opportunities programme assists Australian industry to link into global supply chains and bid for work on major international projects. It also encourages multinational enterprises to make further investments in Australia.

- The Innovation Ambassador programme, at a cost of $5 million, encouraged innovation and entrepreneurship, particularly amongst small business and young Australians to help spread the word.

- Entrepreneurs Tax Offset of up to 25 per cent to help small businesses with an annual turnover of less than $75,000.

- New Business Intensive Assistance programme to assist business owners who may not be familiar with GST, BAS, and general book keeping requirements.

And, to rub salt into the wound of small business, Labor has announced in the Budget that Australian businesses will be slugged with $1.3 billion in software tax.

“Wayne Swan has taken an axe to small business funding in the Budget, wiping almost $1 billion in funding for important programmes to assist small to medium operators,” Shadow Small Business Minister Steven Ciobo said.

“He’s robbed the engine room of the economy, particularly in areas of entrepreneurship and innovation which the government should be encouraging, rather than discouraging by axing grants and advisory services.

“What’s clear is Labor does not believe in small business, and after just seven months at the helm, Swan couldn’t wait to cut the rope, abandon ship and leave small business to steer its own ship with almost no assistance from the government.

“The massive spending cut comes on top of the 15-year record collapse in business confidence under the leadership of Kevin Rudd, and a Treasury forecast that unemployment will increase as a result of Labor’s workplace relations laws.”