The election can’t come soon enough for us. The main reason is certainty. We want to get on with it and so do our customers. The problem is that our customers are not spending until they know which party, Labor or Coalition will be running the country after September 7. There are many services based small businesses in similar situations to us that just want this over.
As a small business owner and operator in the IT sector, I’ve listed to what both candidates have to say around improving the situation for small businesses. Tony Abbott and Kevin Rudd have been going toe to toe with promises left, right and centre but neither of them has addresses a key area for small businesses in the services sector. For me, the issue is PSI. The rules around Personal Services Income for small business operators are killing the potential for growth and competition in the services sector.
If PSI rules were relaxed, businesses would be able to use services income to employ additional staff, which in turn would generate more tax revenue and inject more money back into the local economy. It would drive down prices through competition and provides growth opportunities that some businesses can’t achieve any other way due to excessive risk. I can’t see a downside for the government in relaxing the rules.
If anyone has the ear of Mr Abbott or Mr Rudd, please pass on my wish…