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2024 Budget: Cost of Living Tops List for SMEs

This evening the 2024 Federal Budget committed to address cashflow and cost of living pressures for small and medium sized enterprises (SMEs), through the provision of a $20,000 instant asset write off extension for businesses with turnover of less than $10 million to 30 June 2025 and energy bill rebates of $325 for around one million businesses.

Business management platform MYOB’s recent MYOB Business Monitor SME research found 52% of small businesses wanted to see cost-of-living measures in the Budget. In addition, General Manager of SME, Emma Fawcett, said that the Federal Budget also included a number of measures designed to support the productivity and growth of Australian SMEs.

“Our latest MYOB Business Monitor research shows measures that relieve cost-of-living pressures were the number one item SMEs wanted in the Budget, and measures like the energy and tax relief will be welcomed.”

The Energy Bill Relief Fund and confirmed tax cuts will be welcome news for both the average Australian and SMEs; consumer research commissioned by MYOB found cost-of-living is impacting 56% of Australians. Sixty-five per cent said they’re spending less on meals out or food delivery and 62% are spending less on entertainment.

“Small businesses are feeling the impact of cost-of-living on two fronts: their customers are spending less with them and the cost of doing business is growing. More money in the hip pockets of all Australians means more will flow through to small businesses and help them drive Australia's economic recovery.”

Mid-market wants and wins

Measures the Government announced this evening that will be of interest to medium-sized businesses include the Future Made in Australia Innovation Fund and tax incentives for critical and green materials.

“We’re pleased to see targeted incentives that encourage businesses to make investments that will enhance their productivity, improve innovation, and contribute to the growth of Australia’s vibrant and important SME community.

“At a time when businesses globally need to achieve more with less, it’s great to see more support for businesses to navigate these challenging times in the short term, positioning them in a leadership role for Australia’s future economic growth.

“Australia’s 2.5+ million small businesses employ over 7.4 million Australians and make up 99% of Australian private enterprises. They are the lifeblood of the economy and it is pleasing to see Government deliver support for them to ensure the prosperity of the Australian economy.”

For more information on tonight’s Federal Budget announcements, visit: https://www.myob.com/au/blog/

ENDS

Selina Ife

Media Manager

E: selina.ife@myob.com

About MYOB

MYOB is a leading business platform with a core purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business, financial and accounting solutions direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.