14th May, 2024
The highly anticipated 2024 Federal Budget has promised to address the continued rising cost of living stress, with energy bill relief at the forefront of these measures.
Treasurer Dr Jim Chalmers handed down the government’s third Budget, determined to deliver cost of living relief without adding to inflation.
Our latest MYOB Business Monitor research of 1,000 small and medium sized enterprises (SMEs) shows Budget measures that relieve cost-of-living pressure are at the top of the list for SMEs, above the removal of red tape and lowering of the company tax rate.
A separate survey of 1,000 consumers, commissioned in the weeks leading up to the Budget, found cost-of-living is impacting 56% of Australian consumers. Sixty-five per cent said they’re spending less on food delivery or going out for meals and 62% are spending less on entertainment. This in turn impacts the bottom line of the nation’s 2.5+ million SMEs.
MYOB General Manager of SME, Emma Fawcett, said the Federal Budget demonstrated a focus on balancing challenging economic conditions with initiatives to boost productivity and growth.
“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.
“Small businesses are feeling the impact of cost-of-living on two fronts,” Emma says.
“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.
“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.”
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.
“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,” Emma says.
“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 the Government deliver support for them to ensure Australia’s future prosperity.”
The 2024–25 Federal Budget has introduced several measures aimed at supporting small businesses in Australia. Here are the key takeaways:
These initiatives are designed to ease cost of living pressures, support economic growth, and enhance the capabilities of small businesses to thrive in a changing economic landscape.
For larger businesses, the 2024-25 Federal Budget includes several significant initiatives aimed at supporting growth, innovation, and sustainability.
Here are the main takeaways:
These measures are designed to foster a conducive environment for large businesses to grow and adapt, aligning with global trends towards sustainability and innovation while ensuring economic and national security.
Tertiary goals
Student debt
The Government will implement a new National Innovation visa, replacing the current Global Talent visa (subclass 858) from late 2024, to target exceptionally talented migrants who will contribute to sectors of national importance.
The Business Innovation and Investment visa program (BIIP) will cease. Refunds of the visa application charge will be provided from September 2024 for those who wish to withdraw their BIIP application.
This measure includes $1.4 million in 2024–25 for necessary system changes for the implementation of a new visa and closure of the BIIP.
$1.1 billion has been allocated to pay superannuation on Government-funded Paid Parental Leave, with funding allocated to SMEs to support this initiative.
$187.4 million is being provided to better protect taxpayer data and Commonwealth revenue against fraudulent attacks on the tax and superannuation systems. Funding will upgrade the ATO’s information and communications technologies and increase their fraud prevention capabilities. This will ensure the ATO has dedicated resources to manage increasing risk, prevent revenue loss, and support victims of fraud and cyber crime.
The Government will provide $7.5 million over four years from 2024–25 (and $1.5 million per year ongoing) to modernise regulatory frameworks for financial services to improve competition and consumer protections for services enabled by new technology.
The Government will develop and consult on legislation to licence and regulate platforms that hold digital assets and progress related reforms, including continuing exploratory work on Central Bank Digital Currencies, asset tokenisation and decentralised finance.
There will also be a new regulatory framework for payment service providers (including digital wallets and electronic stored value providers), including licensing and a mandated ePayments Code.
We asked Australia’s small business community what they wanted to see from the Budget, and one in five (23%) told us that measures to address energy costs were on their wish list.
The Energy Bill Relief Fund will assist in some way to helping small businesses tackle rising costs. It’s a step in the right direction for the nation’s 2.5+ million SMEs, who are struggling with the rising cost of doing business. They feel the burden of inflation twice, with consumers spending less and operational costs on the rise.
It’s our hope that cost of living relief more broadly will put more money in the hip pockets of Australians, which can flow through to the small and medium-sized businesses that together contribute more than half of the nation’s economy.
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