Sydney Barber Battled the Pandemic, Inflation, and Red Tape—Now It’s Time to Give the Tax Rate a Haircut

Australia has recorded 29,000 small business closures in three years.

Renee Baltov, owner of the men's grooming salon The Barberhood in Sydney's financial centre Martin Square. Courtesy of Renee Baltov

Renee Baltov, owner of the men’s grooming salon The Barberhood in Sydney’s financial centre Martin Square, has fought hard to keep her business afloat since COVID-19.

The pandemic left her struggling with closures, a vanished customer base, and a slow road to recovery.

Yet, even as customers returned, new challenges emerged: rising inflation, soaring operational costs, and a critical shortage of skilled workers.

She points to the staggering closure of 29,000 small businesses in the past three years as proof that the current economic climate has taken its toll.

“We are the largest employers in the country, yet we are always the last to be considered,” she told The Epoch Times, criticising government policy she says has contributed to the huge failure rate of small business.

Just a week ago, CreditorWatch reported that 9.3 percent of hospitality businesses had closed in the year to February 2025.

Call for More Serious Policy

Baltov says policies like Labor’s personal tax cuts announced in the budget, or the $20,000 instant asset write-off, are insufficient.

She’s calling for a broader tax cut for businesses and a significant reduction in red tape, particularly in the realm of industrial relations (IR) that she says have been introduced with little consultation.

A woman sets up tables and chairs outside a restaurant in Melbourne, Australia, on July 28, 2021. Con Chronis/AFP via Getty Images

“The non-compete clause changes for hairdressing businesses, for example, could ruin us. And they didn’t even ask for our input,” she laments.

Labor announced it would be removing non-compete clauses for those earning less than $175,000 per year, meaning they'd be more free to move between similar jobs even if they are in the same vicinity.

Time to Cut Small Business Some Slack: Council

Luke Achterstraat, CEO of the Council of Small Business Organisations Australia (COSBOA), echoed Baltov’s concerns, saying small businesses is the “lifeblood of the economy.”

COSBOA is urging policymakers to cut the tax rate from 25 percent to 20 percent for firms with a turnover under $20 million, citing cost-of-living pressures and excessive red tape.

“Small businesses are the engine room of the Australian economy and part of our social fabric,” he told The Epoch Times, calling Labor’s latest budget “underwhelming” and a “missed opportunity” to help drive small business growth—small businesses employ about 5 million Australians.

A general view of inside The Old Clare Hotel in Chippendale photographed through a window on May 03, 2020 in Sydney, Australia. Ryan Pierse/Getty Images

Achterstraat also said the instant asset write-off is helpful, but said it should be permanent.

According to COSBOA’s findings, 69 percent of Australians believe in lowering taxes for small businesses, a figure that jumps to 76 percent in marginal seats.

Migration Bringing in the Wrong Skills

Meanwhile, Baltov says that while migration numbers have been high, the country has not brought in the right skills.

“We don’t have hairdressers, we don’t have builders. Tradespeople are in short supply, and instead of addressing that, the government has made it even harder with exorbitant visa sponsorship costs,” she said.

She added that the increased Temporary Skilled Migration Income Threshold (TSMIT), which sets the minimum wage rate for migrant workers, has driven up wages beyond industry awards, placing further financial strain on businesses like hers.

Baltov called for more transparency regarding visa fees, and questioned why businesses are being charged so much to sponsor visas when there’s little evidence that the money is being reinvested into training Australian workers.

Election Promises: Which Party Will Deliver?

As the election nears, both major parties are vying for the support of small business owners.

Labor has announced a range of measures, including an additional $150 energy rebate for eligible businesses, saying it has given $800 or relief since 2022.

In an effort to cut red tape, it has pledged $900 million through the National Productivity Fund and $207 million to modernise business registers.

The Coalition, meanwhile, is offering more direct tax relief.

Opposition Leader Peter Dutton has promised to increase the instant asset write-off from $1,000 to $30,000 and make it permanent.

He has also pledged to reintroduce a $20,000 deduction for small business entertainment expenses, allowing owners to claim for meals and entertaining, like team-building events.

To tackle the skills crisis, he has set a target of 400,000 apprentices and trainees, with businesses receiving $12,000 for hiring in critical industries.

For  Baltov and thousands of small business owners like her, the stakes couldn’t be higher.

“We don’t need more talk—we need action,” Baltov says.