Mid-sized companies need support to capitalise on export opportunities: Grant Thornton boss

While the federal government’s support of small business in the recent Budget has been welcomed by industry, mid-size businesses are missing out, according to Tony Pititto, national head of food & beverage, Grant Thornton Australia.

Mid-sized operators need support to capitalise on the export potential of the agribusiness and food and beverage industries, Pititto said.

“Real incentives, such as reducing company tax rates for mid-sized agribusiness and food and beverage exporters, would truly encourage these companies to focus on export opportunities - especially the growing Asian market,” said Pititto.

“Company tax reductions for the sector must be linked to exports. This could be done by granting reductions in company tax on export income to those food producers with turnovers of less than $250 million, which achieve export revenues of up to $100 million.

“These measures would undoubtedly encourage a real export focus and growth for the sector.”

Government commitments to develop local infrastructure have been welcomed as they will further facilitate export opportunities, Pititto said.

“While the federal government is yet to release its white paper on developing Northern Australia, it has promised to help private developers and state governments get concessional loans of up to $5 billion, for infrastructure like dams, pipelines and power plants, providing more efficient channels to export and local markets,” he said.

“The new $100 million Northern Australia Beef Roads Fund will make targeted upgrades to key roads necessary for transporting cattle in northern Australia and provide further efficiencies to market for mid-size operators looking to optimise export opportunities.”