Small business a top priority in first 100 days of Gallop Government

24/5/01
Premier Dr Geoff Gallop said today that the State Government had made protecting and promoting the interests of small business a top priority in its first 100 days in office.
Delivering the keynote address at CAMS' seventh Business Breakthrough Breakfast, held this morning at the Hyatt, Dr Gallop said the Government had acted swiftly to implement a number of reforms designed to support small business.
"The Government recognises that small business is a vital sector, contributing employment, economic growth and innovation to the State," Dr Gallop said.
"It employs almost 360,000 Western Australians and has the ability to meet the challenges of globalisation by developing new knowledge industries.
"The Government recognises the suffering endured by small business as a result of the GST and has acted swiftly to help ease this burden."
Dr Gallop identified four key initiatives which the Government had introduced during its first 100 days which were aimed at supporting small business:

• stamp duty on workers' compensations premiums will be cut from five to three per cent, effective from June 30;
• Government agencies have been instructed to pay their bills within 30 days - a move that has remedied the massive cash flow problems suffered by many small businesses under the previous Government's 60-day payment period;
• the Government has covered workers' compensation payments affected by the collapse of HIH Insurance. The plan involves offering business a smaller reduction in workers' compensation premiums than originally planned in order to fund a five per cent levy to meet the liability caused by the HIH collapse; and
• the Government has reduced the TAB turnover tax by 10 per cent, significantly increasing profits to the racing industry.

Dr Gallop said these initiatives had helped lay the foundation for small business in Western Australia.
However, the Government recognised that there was still a long way to go.
A business taxation review would be conducted in order to improve efficiency and reduce compliance costs as part of the Government's commitment to maintaining the State's taxation competitiveness.
Legislation would also be introduced to further simplify the State's taxation system by combining the administrative provisions of a number of State taxing statutes into a single Taxation Administration Act.
Dr Gallop said Government agencies spent $5 billion a year on purchasing goods and services.
"This contributes significantly to the State's economy and provides a vital market to small and medium sized business," Dr Gallop said.
"The Government will do everything in its power to ensure that small business can take advantage of local purchasing, which is so crucial to local economies - creating jobs and benefiting local communities."
Dr Gallop said the Government was firmly committed to small business in regional WA and initiatives to be introduced in this area included:

• maintaining and strengthening the existing regional purchasing preference;
• giving Government local purchasing officers wider discretion to purchase locally;
• reviewing the practise of "bulking up" work into larger contracts, which effectively excludes small business; and
• requiring Government agencies to report on the dollar value of work carried out in each region and the dollar value of that work allocated to local businesses in the region.

Dr Gallop said the Government looked forward to the opportunity of meeting the challenges of its first term in office.
Media contact: Tessa Hopkins - 9222 9475