May 1st, 2026COSBOA calls for key Budget levers to unlock small business growth and productivity
COSBOA calls for key Budget levers to unlock small business growth and productivity
The Council of Small Business Organisations Australia (COSBOA) is urging the Federal Government to prioritise small business in the upcoming Budget through a set of practical, targeted measures that support immediate viability and long-term growth.
Small businesses contribute around one-third of Australia’s GDP and employ more than 5 million people yet continue to operate under sustained pressure from rising costs, compliance complexity and ongoing economic uncertainty.
COSBOA CEO, Skye Cappuccio, said the Budget must strike the right balance between short-term relief and longer-term policy settings that support business confidence.
“Small businesses are managing a cumulative set of pressures, from fuel and insurance through to compliance and financing costs,” Ms Cappuccio said.
“What they need from this Budget is clear: immediate backing where it’s needed, and policy certainty that allows them to plan ahead, invest and improve productivity.”
At the centre of COSBOA’s priorities is increasing the Instant Asset Write-Off from $20,000 and making it permanent.
“Right now, the threshold simply doesn’t reflect the real cost of doing business or enable significant investment,” Ms Cappuccio said.
“For a tradie, it’s a vehicle or equipment needed to take on more work. For a food producer or manufacturer, it’s machinery that increases production capacity and reduces downtime.
“These aren’t discretionary purchases, they are the tools businesses need to operate efficiently, be innovative and deliver more with the resources they have.”
Reducing regulatory burden remains a critical and immediate opportunity to ease pressure, with COSBOA supporting the joint call from industry for a 25 per cent reduction in red tape, alongside practical reforms that simplify regulatory frameworks and reduce duplication.
Small businesses are currently spending the equivalent of almost a full day each week on compliance and administration – from managing BAS and tax reporting, navigating wage awards and pay requirements, renewing licences and permits, maintaining insurance documentation, and meeting increasing data and privacy requirements.
A recent report estimates regulatory compliance costs the Australian economy around $160 billion annually, with duplication across governments a key driver of unnecessary cost and complexity.
“For many small businesses, red tape isn’t abstract – it’s paperwork, forms, duplicate reporting and time spent dealing with multiple agencies,” she said.
“That’s time taken away from customers, staff and running the business. Reducing duplication and simplifying these processes would immediately ease pressure and lift productivity.”
COSBOA is also calling for targeted support for small businesses facing acute cashflow pressures as a result of the fuel crisis, including a proposed $3,000 incentive voucher for small businesses to access trusted advisers such as bookkeepers and accountants.
“Many small businesses don’t have the capacity to navigate financial pressure alone and delay seeking advice because of cost, even when they need it most,” Ms Cappuccio said.
“A targeted voucher to access a qualified service provider would help certain businesses manage cashflow, make informed decisions and remain viable.
“This is about giving small businesses the tools and advice they need before challenges become crises.”
Continued investment in capability-building programs such as Cyber Wardens, which has already helped thousands of small businesses to build resilience against growing cyber risks, remains important.
Support for initiatives like COSBOA’s Go Local First to drive customer demand to local businesses.
Ms Cappuccio said small businesses play a critical role in supporting communities and the broader economy. “Whether it’s a local café, a tradie, a farmer or a small retailer, these businesses are employing local people, supporting other local businesses and keeping communities connected.
“They are the fabric of local economies, particularly in regional Australia.
“If the Government pulls the right levers, small businesses will do what they’ve always done – invest, employ and drive economic growth,” Ms Cappuccio said.
