Small to medium business 97-99% contribution to the Australia economy verses globalism by Graham Healy

** SMEs (typically <200 employees, with small <20) have long represented ~97-99% of businesses. THE TAX BURDEN must be Lifted off Small to Medium Business = more CASH FLOW into the Economy .

At the moment under the socialist/communist government of Albanese profits are sent off shore while Australia's economy is plunged into debt with wild and irresponsible government spending plunging the Nation into economic chaos much the same as the Whitlim era. Graham Healy Sun 12/7/26 **SME contributions to the Australian economy have been consistently significant as the backbone of employment and activity, though data for exact 1975 figures is limited (pre-digital ABS tracking). ** SMEs (typically <200 employees, with small <20) have long represented ~97-99% of businesses.

The Burden for Small Business under Labor is insufferable Graham Healy

Key trends (approximated from ABS, Treasury, and reports; GDP/employment shares relatively stable but absolute scale grew with economy):

### SME Contributions Table (Approximate Shares)

**Note:** Tax contribution % to government revenue is harder to isolate precisely for SMEs alone (many pay via personal income tax for sole traders/partnerships; companies at 25-30%). Estimates draw from overall small business tax gaps and collections.

- **1975 era (1970s context)**: Economy more manufacturing/agriculture-heavy. SMEs ~ half private employment, ~1/3 value added (similar to later). Limited precise data; manufacturing decline started post-1960s.

- **1990s-2000s**: SMEs ~97% businesses, ~45-50% private employment, ~30-35% GDP/value added.

- **2020s (2023-26)**: ~98-99.8% of ~2.6-2.7M businesses; ~70% workforce (~8.5M people, or ~2/5 private sector jobs); ~1/3 GDP (~$500B+ activity).

**Tax contributions**: SMEs contribute substantially via company tax (lower rate for base rate entities), PAYG withholding, GST, payroll tax (state), and personal income tax for owners. Overall small business income tax gap ~17% in 2022-23 (underpayment). No exact historical % of total gov revenue, but small businesses support broad base. Total tax revenue ~$839B in 2024-25 (federal dominant).

For a full table, precise longitudinal data is patchy pre-2000s, but the role has been stable in relative terms while economy grew ~10x+ in nominal GDP.

### Hidden Taxes and Total Tax Burden Table

Australia has ~125 taxes/charges across levels of government. Direct (income) vs. indirect ("hidden"):

- **Income Tax (Individuals)**: Progressive 0-45% + 2% Medicare (plus bracket creep). Average effective lower; personal income tax ~50%+ of federal revenue historically, now ~half.

- **Small-Medium Companies**: 25% (base rate <~$50M turnover) or 30%. Lower than many OECD.

- **Hidden/Indirect**: GST 10% (broad but exemptions); Fuel excise (~40-50c/L, varies); Payroll tax (state, ~4-6% on wages >threshold); Stamp duty/land tax; Embedded in utilities/groceries (electricity, gas, council rates, etc.); Super guarantee (compulsory, ~11.5%, acts like deferred tax).

**Per Dollar Earned (Rough Effective Breakdown for Typical Household)**: Estimates vary by income/bracket/lifestyle. Total tax-to-GDP ~29-30% official, but effective burden (incl. indirect + super) often cited 34-36%+ or higher when including all.

- **Income Tax**: ~20-35% marginal/effective on wages (lower for avg).

- **GST/Consumption**: ~8-10% on spending (much of disposable income).

- **Fuel Excise + Other**: Adds ~5-10% effective on transport/household.

- **Total Effective**: For many, 40-50%+ of income "taken" when combining direct + indirect + hidden (e.g., higher power/gas from policy, groceries). Exact "per dollar" depends (e.g., low-income more GST hit; high more income tax). Reports note overlapping burdens amplify effective rates.

### Cost of Living Comparison 1975-2026 (Inflation-Adjusted + Tax Burden)

Use RBA inflation calculator for purchasing power. Nominal wages/GDP grew massively, but housing, energy, and taxes eroded gains. CPI rose ~5-6x+ from mid-1970s to now (high inflation 1970s, then lower).

**Approximate Table (Boiled Down, Real Terms + Tax Impact)**:

- **1975**: Lower housing costs relative to income; manufacturing wages; lower overall tax mix pre-GST (introduced 2000). Cost of living basket much cheaper nominally; fuel/power cheaper. Tax burden lower complexity.

- **2026**: Housing crisis (prices up 700%+ in cities over decades, far outpacing wages/inflation); energy costs spiked (renewables transition); groceries/utilities higher. Real wages pressured; tax burden higher with more indirects + bracket creep.

**Net "Take" per Income Dollar**:

- 1975: Lower % to gov (less GST, different excise); more take-home for basics.

- 2026: Higher effective (income ~25-45%, +10% GST on spend, fuel/power embedded ~5-15%, total ~40%+ "taxed away" across lifecycle). Cost of living indexes show ongoing rises in housing/transport/health.

Overall, real gains in living standards but squeezed by housing/energy/policy costs. Median rents ~33% income in places.

### Multinationals, Profit Repatriation, and Renewables Subsidies

**Multinationals**: Significant profit shifting offshore (global issue; Australia loses via base erosion). Estimates vary; foreign MNCs pay company tax but use structures (e.g., Singapore hubs historically cited). Large corporates contribute via tax but gaps exist (~$3.7B large corporate gap). Repatriation often minimizes Australian tax on profits earned here. Exact annual "lost" hard to pin (tens of billions globally scaled).

**Renewables Subsidies/Costs** (Wind/Solar):

- Federal schemes (e.g., RET/LRET): ~$29B+ over ~10 years to 2022-23 to producers/consumers (LGCs, small-scale). Ongoing ~$2.6B/year average; projections to 2030 add billions more.

- Foreign-owned farms receive large shares (~$1.2B in one recent year for top 50 wind/solar).

- Total to taxpayers/consumers: High via bills + budgets. Fossil subsidies also exist (~$16B in 2025-26), but renewables transition adds network/reliability costs.

**Projections**: Government aims for renewables to lower costs long-term (e.g., by 2030s with scale/storage), but current burden on bills/taxpayers persists amid intermittency/grid upgrades. Capacity targets aggressive (GW growth), with subsidies like Capacity Investment Scheme. No firm "no longer burden" date; depends on tech/costs.

These tables summarize available data—historical gaps exist due to reporting changes. Economy transformed (services/mining up, manufacturing down), with SMEs resilient but facing rising costs/taxes. For custom spreadsheets or deeper dives (e.g., specific years), provide more details!