NSW’s peak business organisation, the NSW Business Chamber, has called on the Federal Government to reduce company registration fees charged by ASIC as a tangible measure to support Australian small businesses.
The proposal for fee relief is a key component of the Chamber’s submission
to the Government ahead of this year’s Federal Budget.
“With businesses facing rising costs and tougher trading conditions, businesses are looking for savings,” said NSW Business Chamber Chief Executive Stephen Cartwright.
“The numbers for company registration fess simply don’t stack up and are another expense businesses face before they can even open the door,” Mr Cartwright said.
“Fees paid by small business include an annual fee of $263 for proprietary companies, a $488 fee to register a proprietary company, and other fees that vary depending on the type of business.
“According to its most recent Annual Report, ASIC raised more than $1.2 billion in fees, charges and cost recovery levies, while total operating expenses were just over $400 million.
“ASIC fees should be adjusted to ensure revenue is proportionate to ASIC’s costs and should not be relied on to subsidise other government activities.
In its pre-Budget submission, the NSW Business Chamber also reaffirmed its support for Budget repair and tax reform while also calling on initiatives to boost investment in skills and economic capacity.
“Skills initiatives and support for exporters rank high among the list of priorities for small business and April’s Budget should ensure existing government programs are appropriately funded.
“The move to increase the threshold to $25,000 will make it easier for small business to benefit from the instant asset write-off, though it’s time to make it permanent and explore further investment allowances for asset purchases above $25,000 to keep Australian businesses competitive.
“With cost pressures really starting to bite on the growth and employment plans for small business all levels of Government need to be looking at opportunities to ensure businesses can keep operating, investing and most importantly employing Australians,” Mr Cartwright said.