31 January 2012

Minister welcomes ABS small business count figures

Minister for Small Business Mark Arbib today welcomed the release of the Australian Bureau of Statistics Counts of Australian Businesses, including Entries and Exits June 2007 to June 2011 publication which showed an increase in new business registrations as well as a decline in the exit rate of businesses.

The ABS recorded a 3.6 per cent increase in the number of actively trading businesses in Australia in 2009-10 as well as a 0.4 per cent increase in 2010-11.

Senator Arbib said while the growth over the past two years resulted in an increase of more than 83,000 small businesses operating, the government was aware of the challenges facing small businesses.

"The growth in small businesses over the past two years should inspire confidence within the sector and is a reflection of the strong position of Australia's economy," Senator Arbib said.

"Despite the strong result we understand that some small businesses are finding the current environment tough and that's why we introduced some important changes to assist small businesses to reduce red tape and improve cash flow.

"From July 1 small businesses will be able to immediately write of all new assets valued at under $6,500 up from the current rate of $1,000 and write off up to $5,000 for motor vehicles meaning increased cash flow.

"Small businesses companies will also benefit from a reduction in the company tax rate from 30 per cent to 29 per cent with a one year head start on other companies."

Senator Arbib said in June 2011 there were more than 2 million active small businesses in Australia, representing almost 96 per cent of all businesses.

"Labor supports small businesses because they are at the heart of Australia's economy, employing about 5 million people," Senator Arbib said.

"Today's data shows that they continue to make a significant contribution to our economy.

"The community must not forget that small business owners are people who put all their effort into running their business. They deserve strong support.

"The Government is committed to supporting Australian small businesses and will continue to work closely with the sector to ensure further growth".