Now that the Coalition has been returned to power, the Morrison government’s promises to the small business sector have taken on fresh significance.
Ahead of yesterday’s election, the government said it would support small businesses by:
- Paying them on time
- Lowering their taxes
- Expanding their access to finance
- Reducing red tape
- Making it easier for them to hire
One of the government’s specific policies for small business was to invest $100 million to establish the Australian Business Growth Fund.
This fund is designed to provide “passive equity investment” to small businesses, so they can secure financing without taking on extra debt or surrendering control of their companies.
According to the government, the fund will:
- Operate independently of government
- Operate on a commercial basis
- Invest in businesses with turnovers of between $2 million and $50 million
- Invest in 30-50 businesses each year
Small businesses that are given equity funding will also receive mentoring, coaching and access to a talent pool of expert staff.
Tax cuts in the pipeline
The government also said it remains committed to following through on two policies it implemented ahead of the election.
The $2 billion Australian Business Securitisation Fund, which will start on July 1, is another policy designed to help small businesses secure finance.
“This fund increases small business access to competitive finance by providing more funding for small banks and non-bank lenders,” according to the Coalition.
Meanwhile, the government will continue cutting taxes for small business.
The corporate tax rate has already been lowered from 30% to 27.5%, and will keep falling to 25% by 2021-22.