Australia's smallest enterprises are still being discouraged by the effects of the GST, a new survey has found.
More than two years after the introduction of the tax, one in three small businesses that responded to QUT's
Australian National Organisational Study reported that the tax is still hampering their growth plans.
The study, conducted by Faculty of Business dean Professor Sandra Harding, surveyed 607 businesses across Australia.
Harding says the GST has had a detrimental effect on growth for almost 22% of organisations across all sectors and sizes, though the effect on small firms was worst.
She found there was no significant change in attitudes between those in the recent survey and similar data she collected in 2001.
"While it may be the case that some Australian organisations are becoming used to the new tax regime, these data demonstrate no significant change in reactions to the GST over time.
"So while people might be getting used to it, they're certainly not liking it any better," Harding says.
However, the study also found three quarters of respondents are planning to grow in the future.
Of the nation's largest organisations, 13% responded they were likely to start a new operation interstate or overseas.
"The reasoning behind these organisations' choices of location puts in doubt current government incentive schemes offering reduced taxes and regulation to encourage businesses to shift," Harding says.
"More than 80% of respondents indicated they would not start an operation elsewhere because labour costs are lower, taxes are lower or because there night be less government regulation in the new location."
Harding's survey also found:
- Almost 60% of Australian organisations have not invested in research and development on the past two years.
- Most Australian organisations are resilient, with more than one-third reporting they have sufficient cash reserves to survive a short-term crisis. However, more than half said they would need to claim on insurance to survive.
- Public transport was identified by organisations across Australia as their least adequate local infrastructure, followed by railways and roads.
The study also provides new information about outsourcing practices, government assistance programs, factors affecting organisations' development, and key sources of advice for organisations.
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