Australia SMEs Dissatisfaction Rating on Government Jumps 56%

Aussie business owners' dissatisfaction with the Federal Government has soared to a three year high with the majority of Aussie SMEs (56%) now dissatisfied, up from 31% in August 2010. This is the highest dissatisfaction level recorded by the Business Monitor since June 2008, accprding to the latest research from the MYOB Business Monitor Special Report released on Wednesday.

The MYOB Business Monitor Special Report also found the numbers of business owners satisfied with the Federal Government's support for business has suffered a corresponding plunge from 27% in August 2010 to 14% in October 2011.

Tim Reed, CEO MYOB, said, "Business owners are a very pragmatic group and go into business because they are passionate about delivering a product or service better. They don't tend to have ideological views, but support clear policies that will strengthen the economy and remove red tape. If the Government wants to turn around these record dissatisfaction levels, new policies need to pass the MYOB test: does this make business life easier for Australia's 2 million SMEs?"

The answers for the Federal Government are clear from the research. Aussie Business owners want immediate action on the following five areas:

1. Policies that significantly simplify the GST/BAS reporting process (69% would vote for)

2. More Federal government investment in transport infrastructure in major States and cities (66%)

3. Increased funding for innovation, research and development by Australian businesses (63%)

4. Introduction of a 'buy Aussie made' policy for government procurement where possible (61%)

5. Abolition of the Federal carbon tax (61%)

"The Federal Government has a challenging run up to the next election. It needs to shore up business tax revenue shortfalls if it's to meet its surplus promise, while at the same time stimulate non-mining sector business investment and growth," Mr Reed said.

"With the carbon tax legislation off the immediate agenda, the Gillard administration can take back the policy initiative and positively respond to the recent Tax Forum. Some excellent policy suggestions put forward at the Forum included: simplifying small business taxes into fewer, but harder working, broad based taxes; reducing red tape and compliance; encouraging businesses with policies like the tax loss carry back idea and finally compensating them for the administration they do on behalf of the Government," he commented.

Mixed feelings from business owners toward State Governments

The MYOB Business Monitor Special Report has found the new O'Farrell administration in New South Wales is causing less dissatisfaction than its predecessor, yet (like other State Governments) it has a fairly low level of satisfaction at only 14%.

Following Anna Bligh's admired efforts during the Queensland floods, SME dissatisfaction with the Queensland Government is back to a very high level (65%), closely followed by South Australia (59%), and Western Australia (54%).

"SMEs are the silent engine room of the Australian economy. They are becoming increasingly frustrated by the policy inertia they are seeing from all levels of Government. We call upon all political parties to stop ignoring the SME sector and start developing policies that will genuinely make business life easier," Mr Reed concluded.