Finance

Government grants & tax concessions favours big business: ABS

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Government financial assistance is completely skewed towards big business, reveals new data from the Australian Bureau of Statistics.
 

Only 7% of businesses that employed up to four people received at least one type of government financial assistance during the year ending 30 June 2006 compared with 47.5% of large businesses (more than 200 people).

Grants were the most commonly reported type of government financial assistance says the report, titled “Selected Characteristics of Australian Businesses“. The graph below is from the report.

A whopping 27.3% of large businesses received grants, compared with only 1.4% of micro businesses and 8.3% of businesses with staff between five and 10 people. Medium-sized companies, of between 20 to 199 people, did not fare much better, with only 9.9% receiving government grants.

“The proportion of businesses that received each type of government financial assistance increased across each successive employment size range in almost all instances,” the report notes.

Tax concessions, (excluding tax deductions) are also completely skewed towards big business. The report shows that while 21% of large companies receive tax concessions, only 0.4% of micro businesses and an average of 4% of small and medium sized businesses benefit from tax concessions.

Type of government assistance, 2005-06

 

Have your say: Is Australia skewed towards big business? Should small businesses get more financial assistance from government? Who really needs assistance? Large or small businesses?

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