Small business will be supported through the global financial crisis by a package of Rudd Government initiatives launched by the Prime Minister and the Minister for Small Business at a special Small Business Summit held in Brisbane today.
Small business will benefit from new measures announced today including:
* Small Business Support and Advice during the financial crisis from Business Enterprise Centres and other registered business organisations, through a $4 million Government investment over 2008-09 and 2009-10;
* A guarantee of on-time payment for new small businesses contracts with Commonwealth Government Departments - up to $1 million, from 1 December, within 30 days - otherwise small business will have the right to charge penalty interest; and
* A commitment to developing standard procurement documents for co-ordinated procurement and standard approaches to make it cheaper and easier for small businesses to sell to the Government.
Prime Minister Kevin Rudd also said the Australian Tax Office is committed to working with small businesses that are having difficulty in meeting their tax obligations, including often allowing for tax debts to be paid by instalments over a period of time.
If businesses are having problems, they should contact the Tax Office on 13 11 42. Assistance offered would be based on the taxpayer's individual circumstances.
The Government also welcomes the assurances provided at the Summit by banks about the availability of finance to small business.
All these measures are about improving small business cash flow.
Small Business Support and Advice builds on the Government's measures to strengthen the financial system by guaranteeing all deposits from all depositors in Australian banks, building societies and credit unions and for wholesale funding arrangements for Australia's banks.
In paying bills to small business on time, the Government is leading by example, and urges larger businesses to pay their small business suppliers on time too.
Every year the Commonwealth has over 65,000 contracts under $1 million and spends almost $30 billion on goods and services. It is therefore critical that Government is a good partner for small business.
Minister Emerson encouraged all small businesses to register on AusTender (www.tenders.gov.au) to get automatic notification of new Australian Government business opportunities in their industry.
Small business will also benefit from the $10.4 billion Economic Security Strategy, which provides:
* consumers with extra cash to spend on small business goods and services; and
* an extra 56,000 new training places to ensure a skilled workforce.
Small businesses in the real estate and housing construction sector are set to benefit directly from the $1.5 billion First Home Owner Boost, which provides a much needed shot in the arm for the housing industry.
These measures build on the Government's strong commitment to a prosperous small business sector that is supported by initiatives across skills, infrastructure and innovation policies, and a reformed industrial relations and regulatory environment.