Last night’s Federal Budget included a number of measures aimed specifically at the small-business sector, chief among them being:
- $62.6 million over three years for energy efficiency grants.
- $10.9 million in extra funding for the New Access for Small Business Owners mental health support program operated by Beyond Blue.
- $4 million extra for the Small Business Debt Helpline operated by Financial Counselling Australia.
- $5.8 million over four years to support education and compliance associated with introducing the positive ‘respect@work’ duty on employers.
- $2.1 million over four years to establish one-stop shop for workplace sexual harassment information.
- $3.4 million over four years to support the development and delivery of education, technical advice and support services.
- $7.9 million over four years for the Fair Work Commission to support uptake of enterprise bargaining for small business.
- $15.4 million over four years to establish the Startup Year program to deliver HELP loans to graduates, postgraduate and final year undergrad students.
- $18.6 million in Digital Solutions grants for advisory service providers to help small businesses wanting online to independent advice at low cost.
- Funding to improve mobile and broadband connectivity and resilience in rural and regional Australia.
- The Technology Investment Boost and Skills and Training Boost providing an extra 20 per cent tax deduction.
- More funding for childcare, increased fee-free TAFE and vocational education places.
The Budget forecast that inflation will be 7.75 per cent at the end of this year and still high at 5.75per cent by the middle of next year and 3.5 per cent in mid-2024, suggesting small and family businesses will face sustained cost pressures on their businesses.
“Small businesses have a proven track record of lifting our nation,” Small Business and Family Enterprise Ombudsman Bruce Billson said. “Remember, coming out of the global financial crisis, almost 60 per cent of the new jobs were created by small employers even though the sector only accounted for 40 per cent of the workforce. “We continue to urge the government to support small businesses and believe energising enterprise can deliver a stronger economy.”
Ben Kearney, CEO, the Australian Lottery and Newsagents Association, national peak body for newsagents, pointed out that the cost-cutting budget won’t exacerbate inflationary impacts for business further, but lamented the “little attention given” to small businesses.
“We hope to see more investment into invigorating small businesses, which will have a flow on effect on a slowing economy,” Kearney said. “We would also like to see more of a strategic focus on analysing and removing red tape wherever possible as these drive further efficiency and productivity dividends in small businesses.”
Guy Callaghan, CEO of Banjo Loans, welcomed the Treasurer’s focus on decreasing the skills gap through funding allocated to upskilling our local workforce and tertiary education in areas such as care and the digital economy.
“The boost to the skilled migrant program is also very welcome, but this will take time to play out,” Callaghan said. “Investment in manufacturing to expand our industrial base and regional centres should result in positive job creation. Items like small business energy grants will all help with growth initiatives for businesses struggling with increasing power prices.”
MYOB’s chief employee experience officer, Helen Lea, highlighted the investment in a million homes with a reinforced NBN architecture as an initiative with the potential to create new modern communities and future opportunities for Australia’s existing and emerging SMEs.
“The blending of these two investments could well be the gift that keeps on giving for small and family run businesses,” Lea said. “For each new community, there will be cafes, restaurants, hairdressers, retail centres, childcare and more – as these hubs grow, small businesses will take shape alongside them.
“As well as stimulating new business growth and boosting the economy, what’s key is that businesses have the enabling infrastructure to support their survival and growth,” she added. “More than ever, that infrastructure is digital – with recent MYOB research finding 28 per cent of small-business respondents are challenged in accessing a stable internet connection.
“The cumulative impacts of inflation, energy and fuel costs are weighty rocks we will need to chip away at as a nation for small business,” Lea warned. “While the measures announced today address the fundamentals, we anticipate the May Budget will be the one that tackles the structural reform needed to solve these sizeable issues for Australia.”
