The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell has released a suite of recommendations to help support small businesses in their post-COVID-19 recovery.
Key recommendations include legislating 30-day payment terms for small businesses, a permanent small business instant asset tax writeoff of $150,000 and introducing a Small Business Award.
The news comes as some suppliers in the toy industry express their disappointment to Toy & Hobby Retailer regarding payment terms.
Toy & Hobby Retailer has heard first-hand accounts from suppliers who are feeling the economic pinch when retailers delay their payments, even for orders that were placed before COVID-19 took hold.
While the suppliers understand that retailers have been heavily impacted by the effects of the COVID-19 lockdown, some feel that some retailers aren't helping to support the wider industry through this tough time.
However, retailers have experienced an extremely tumultuous time during the pandemic.
In April, the Australian Bureau of Statistics reported the largest ever seasonally adjusted fall in retail turnover of 17.7 per cent, followed by a record-breaking high in May with ABS figures predicting the highest-ever rise of 16.3 per cent – making it difficult for retailers to plan and forecast.
Ombudsman Carnell said that the organisation's plan helps to address some of the issues smaller businesses are facing.
"Small businesses have never done it tougher.
"The devastating bushfire season has been over-shadowed by the impact of the COVID-19 crisis.
"A collapse in local employment, tourism and events industries and the flow of goods and services around our country has led to economic conditions we’ve never seen before.
"Right now, many small businesses are wondering how they will survive and if it is worth continuing in business at all.
"Our Recovery Plan aims to restart the economy by getting people back to work and building economic confidence.
"Small business is the cornerstone of economic activity – employing over five million Australians.
"Our recommendations cover a broad range of areas including taxation, access to justice, industrial relations and government procurement.
"Trade-offs will need to be made but ultimately our COVID-19 Recovery Plan provides the framework to build essential support for Australia’s small businesses and family enterprises and a future that all Australians can be proud of," she said.
The Morrison Government has encouraged all Australians to work together through this tough time for, "Team Australia."