Red tape, tax and training: COSBOA calls for productivity push to back small biz

The Productivity Commission has kicked off a new consultation into boosting national productivity—and COSBOA says it’s a golden opportunity to back small business as the true engine room of the Aussie economy.

The Council of Small Business Organisations Australia (COSBOA) is urging the Federal Government to use this moment to tackle two major handbrakes holding back productivity: tax and red tape.

“This inquiry comes at a crucial time. Small businesses are under significant pressure from rising costs and compliance burdens,” COSBOA CEO Luke Achterstraat said.

“To lift national productivity, we must address the twin engines of small business success – tax reform and red tape reduction. Without action here, we risk productivity stagnation and declining competitiveness.”

Achterstraat is calling for practical, business-friendly reforms to help small operators get ahead—not just survive. “Unlocking small business potential is essential to lifting productivity,” he said. “Every hour a small business owner spends navigating complex regulations is an hour not spent serving customers, training staff, or growing their business.”

“Cutting red tape is not just good policy – it’s an economic necessity.”

Productivity reform: What’s on the table?

The Productivity Commission’s inquiry is digging into five big areas of national productivity, all of which COSBOA says must include small business in the conversation:

A more resilient economy : Small businesses drive jobs, innovation and competition. Fairer tax and less red tape can keep them sustainable and resilient.

Skilled, adaptable workforce: COSBOA’s new survey shows businesses need better training pathways and fewer barriers to entry for new workers.

Smarter digital adoption: While COSBOA supports digital reform, it warns that removing small business exemptions in the Privacy Act could pile on costs and complexity.

Quality care delivery: One in seven small businesses operates in healthcare. GPs, physios, pharmacists and natural therapists all play a critical role and must be recognised in any care reforms.

Energy transition: Most small businesses want to go green, but many are blocked by high costs and lack of clear support. COSBOA says practical advice, financial incentives and education are key to helping them lead the charge to net zero.

Reforms must include small business

With small businesses making up 97.7 per cent of all Aussie businesses and employing more than five million people, COSBOA says backing them is a no-brainer if we want to boost productivity and keep Australia globally competitive.

“Policy that supports their productivity is policy that supports Australia’s prosperity,” Achterstraat said. “A small business-led recovery is the only way to create jobs, strengthen the economy, and ensure Australia remains globally competitive.”

COSBOA will be working closely with the Albanese Government and the Productivity Commission throughout the inquiry to make sure small businesses get a fair go and the tools they need to thrive.

Want to have your say or follow the process? Head to cosboa.org.au for more info.

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