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Both the political and economic environment has changed significantly since the Morrison Government handed down its final Budget in March this year.
Prime Minister Anthony Albanese and Treasurer Dr Jim Chalmers have made it known for some time that this Budget would be fiscally responsible, delivering sensible cost of living relief without adding to inflationary pressures.
So how does it all stack up? Here is MYOB’s take on the major Budget Night announcements.
Cost of living measures create potential for business opportunities
Chalmers announced a five-point cost of living relief package in tonight’s Budget that offers tangible opportunities for many Australian business owners, especially those in the construction sector.
Beyond cheaper childcare, medicines and expanding paid parental leave, this plan also includes an affordable housing program, which entails:
Housing Australia Future Fund – 30,000 new social and affordable homes in its first five years, plus a National Housing Infrastructure Facility to support 5,500 new homes.
The Help to Buy Scheme — enabling up to 40,000 eligible Australians to own their own home with a lower deposit and smaller mortgage
A Regional First Home Buyer Guarantee – supporting another 10,000 new homeowners each year
These, in combination with the $2.4 billion investment to expand NBN connectivity will create new communities and create future opportunities for existing and emerging small and medium businesses (SMEs).
“The blending of these two investments could well be the gift that keeps on giving for small and family run businesses. 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,” said MYOB Chief Employee Experience Officer Helen Lea.
“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.
“More than ever, that infrastructure is digital – with recent MYOB research finding 28 percent of small business respondents are challenged in accessing a stable internet connection.”
Reducing the cost of doing business
For businesses struggling with soaring energy prices, $61.6 million in supporting SMEs to improve their energy efficiency and reduce energy usage will help provide welcome relief.
In June, 35 percent of SME respondents to an MYOB survey reported utilities as the cause of ‘a lot’ to ‘extreme’ concern, as revealed in the MYOB Business Monitor.
Small business wellbeing
While the Budget may have been short on direct, broad-based support for small businesses, there was one measure that stood out in this regard.
$15.1 million will be put towards extending mental health and financial counselling programs for small businesses, as delivered by NewAccess for Small Business Owners and the Small Business Debt Helpline programs.
This funding combines with measures designed to support communities and businesses impacted by COVID-19 and natural disasters, which continue to be a major impediment to sustainable business across Australia.
“Measured” and “pragmatic”: MYOB lauds Labor’s responsible Budget management
It may read like there’s not much for small businesses to take away from tonight’s announcements, but the targeted measures outlined focus on the fundamentals of a healthy economy and are designed to sustain a thriving small business community.
“The measured and pragmatic outcomes delivered this evening will provide ongoing support for small businesses across the country as they continue to weather a tough time,” said Lea.
“With the sector already contributing around $700 billion for the economy, support to assist further, crucial economic contribution is welcomed.”
Lea also highlighted the delivery of the Technology Investment Boost, Skills and Training Boost (both of which were announced in the previous Budget, and are yet to be legislated) remain critical in order to incentivise businesses to adopt digital tools, while the Instant Asset Write Off is also due to finish at the end of 2022-23.
“Getting these businesses thriving again will be encouraged by measures we know are already on course — the Technology Investment Boost and Skills and Training Boost.
“While the Instant Asset Write Off is a notable exclusion, the swift legislation of these Boosts would greatly assist businesses as these Budget measures set out to provide ongoing relief.”
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
