Australia’s small business sector is sick of being tied up in red tape and squeezed for every cent, and COSBOA (Council of Small Business Organisations Australia) says the Productivity Commission review is the perfect chance to turn things around.

The organisation has laid out a four-pillar reform plan covering the economy, workforce, digital tech and the care sector to give small businesses the tools needed to thrive, and COSBOA says the whole country will benefit.

COSBOA chair Matthew Addison said the current system is grinding too many operators down.

“Right now, for many small business owners, simply surviving is a win. If we squander this opportunity, we risk choking the very sector that sustains five million jobs and contributes $500 billion to our economy,” Addison said.

Topping COSBOA’s list of asks is a cut to the small business tax rate, dropping it to 20 per cent. Their modelling shows it could inject $11.4 billion into GDP over five years.

Added to that, COSBOA want the instant asset write-off made permanent and boosted to $150,000. The organisation believes increasing the threshold and making the write-off permanent would give businesses the security they need to invest in business growth.

Addison also warned against replacing one headache with another, putting the kybosh on the proposed “cashflow tax” that has been floated in some quarters. COSBOA says the government should forget it, as it would increase red tape, and that is the last thing businesses need.

“Small businesses need simplicity, not complexity. A lower tax rate means money back into the economy – to employ more staff, adopt new technology and invest in growth.”

– Addison

Fixing the skills crunch

Anyone who’s tried to hire staff lately knows how tough the skills shortage is. COSBOA is calling for targeted incentives for training, faster upskilling pathways, and national recognition of qualifications so someone qualified in one state isn’t locked out of work in another.

They’re backing micro-credentials, advisory services to help businesses pick the right training, and tailored support for small operators. What they don’t want is another round of training levies, which Addison describes as “outdated and just adding cost and complexity”.

Help for small businesses to adopt tech

Small business owners aren’t scared of technology. Most know they need it to grow, but cost, confusion and the fear of stuffing it up often hold them back.

COSBOA wants incentives and grants for digital adoption rolled out nationally, plus a light-touch national AI plan that makes it easier for businesses to dip their toes in without getting buried in compliance.

One hot topic is privacy law. COSBOA is pushing to keep the current exemption for businesses under $3 million turnover, with alternative compliance pathways for those above. For many small players, heavy-handed rules could be a dealbreaker.

Cutting red tape in the care economy

The health and care sectors are some of the most over-regulated in the country, and COSBOA says it’s strangling service delivery. Their recommendations include streamlining regulation, aligning safety standards across programs, and letting professional associations accredit practitioners directly.

COSBOA also wants greater investment in preventative health and progress on national digital projects like My Health Record and Provider Connect.

“Care providers are drowning in duplication. Cutting red tape here means more time with clients, better services, and lower costs,” Addison says.

A fair go for small businesses

The Productivity Commission review is part of a broader economic reform push, and Addison describes it as a “once-in-a-generation” opportunity to get things right for small business. Small businesses and the self-employed are already struggling.

COSBOA says relentless industrial relations changes, rising costs, cash flow pressure, tax office pressure on debts, and regulatory overload all eat into time and energy. So, COSBOA wants the government to change their mindset and regulate for growth, not just risk. It’s all about giving businesses a fair go.

Importantly, COSBOA isn’t asking for freebies. The call is for a simpler, fairer system that minimises regulatory burdens.

“Small businesses aren’t looking for handouts. What we want is a fair, simple, and enabling system that rewards effort, encourages investment, and cuts down on the duplication and red tape that holds us back,” Addison said.

He says the organisation is ready to work with the government on practical solutions that give business owners the confidence to invest, hire and innovate so small businesses can prosper.

You can read COSBOA’s full submission here.

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