Treasurer Joe Hockey's small business budget package is not the economic godsend the government and many commentators make it out to be. Cutting taxes by 1.5% for companies earning less than 2 million dollars per year and allowing small businesses to access a $20,000 tax deduction for business related asset purchases, won't make much difference for the small business sector and sole traders.
The two main reasons why small businesses and sole traders can't flourish in this country are
directly related to the market share, a small number of corporations exercise over most aspects of the Australian economy and taxation laws that allow these same corporations to legally pay
voluntary taxation.
No small business or sole trader paying 28.5% company tax can compete against corporations
paying less than 5% tax on their profits. In almost every aspect of the Australian economy
transnational corporations dominate economic activity that was, in the past, the sole preserve of small business.
If the Coalition government was really interested in helping the small business sector and sole
traders they would be passing legislation to introduce a turnover tax to ensure corporations paid their fair share of tax and they would be passing anti-trust legislation to stop corporations dominating the market place.