MYOB chief employee experience officer Helen Lea said the survey results showing a surge in capital investment from small and medium-sized businesses was significant as it showed them “tooling up” for the future.
Helen Lea, chief employee experience officer at MYOB, says small businesses are preparing for the post-Covid economy.
She said the increase in profits, on top of the cash many businesses had saved through the recession, had put them in a strong position.
“That’s going to give them resilience coming out of the recession and into the uncertainty that they are facing at the moment,” she said. “The increase in wages and staff training is a sign of the times that small and medium-sized enterprises (SMEs) are facing. There’s the challenge of the tight labour market, holding on to staff and training those that they have.”
Ahead of Tuesday’s budget, Mr Frydenberg has come under pressure from the business sector to continue programs to help firms through the post-COVID period.
The Institute of Public Accountants on Friday became the latest organisation to press for the continuation of the instant asset write-off.
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Chief executive Andrew Conway said small and medium businesses needed ongoing support in the face of COVID-related issues.
“SMEs have shown incredible resilience and agility. While government support has provided welcome relief and economic stability, the disruption of COVID-19 has taken its toll. Supply chain disruptions, staff shortages and inflation are biting,” he said.
Chartered Accountants Australia and New Zealand has also pushed for both the asset write-off and the full expensing measures to continue, saying supply chain disruptions were preventing many businesses from importing capital goods.
“Constant tinkering with the capital allowances regime has also added substantial complexity to the
income tax law and confused many business operators. Small businesses need long-lasting, clear
and easy to follow capital allowance incentives,” it said.
Full expensing, however, would put a large hole in the budget. Extending it for a single year cost the budget almost $11 billion.
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