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Struggling small operators plead for tax break ahead of State Budget

Daniel MercerThe West Australian
For the year ahead, a quarter of businesses expected trading conditions to deteriorate, up 9 per cent from December.
Camera IconFor the year ahead, a quarter of businesses expected trading conditions to deteriorate, up 9 per cent from December. Credit: Getty Images/BananaStock RF

WA businesses are calling on the McGowan Government to give small operators a tax break in the State Budget after a big fall in the sector’s confidence about the year ahead.

Amid expectations Treasurer Ben Wyatt will deliver a surplus for the current financial year in the Budget on Thursday, the Chamber of Commerce and Industry WA said almost half of businesses expected conditions to worsen in the next three months.

Barely a third of businesses held similarly pessimistic views at the end of last year.

For the year ahead, a quarter of businesses expected trading conditions to deteriorate, up 9 per cent from December.

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The business lobby will today release the latest results of its WA Super-CCI Business Confidence Survey, showing that the outlook is increasingly gloomy, especially for retailers.

According to the CCI, “small business is struggling the most”, with almost four out of every five operators expecting to either reduce their workforce or leave it on hold. Hiring activity was tipped to slow, with about 20 per cent of businesses likely to lower their headcount.

Rick Newnham, the CCI’s chief economist, said the survey highlighted the need for the Government to give small business tax relief to spur employment growth.

Mr Newnham, pictured, said a recent poll of 800 people found 73 per cent felt reducing taxes “on jobs” should be a priority in the State Budget.

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