By Callum Ludwig
As Australia nears one year of an Albanese Labor Government, the 2023/24 Federal Budget has backed small businesses to take on challenges old and new.
Rising costs and a tight labour market are tough conditions to face but some budget measures look set to help alleviate common concerns.
Executive Officer and business consultant at Yarra Ranges Enterprise Centres (YREC) Alison Fitzgerald said small businesses at YREC are feeling the pinch with two tenants giving notice this week.
“Starting a small business has been a dream for these 2 businesses but both tenants have had to make the decision to seek full-time employment due to increases in supplies and cost of living, and a reduction in the disposable income of their customer market,” she said.
“The government announcement to pay $650 to small businesses is welcomed by other tenants who are also being adversely affected by cost of supplies and decreased markets. Following the 2022 year of ‘survival’, most considered this year to be a year of growth, however this growth is now being compromised by economic impacts.”
$650 in electricity bill relief will be available for small businesses from 1 July 2023.
A welcome increase in the instant asset write-off threshold to $20,000 was announced on a per-asset basis for 12 months from 1 July for eligible small businesses.
Businesses are also being incentivised to be more energy efficient with up to $20,000 available to provide an additional 20 per cent depreciation for eligible energy-saving and efficient electrification assets.
“YREC looks forward to exploring the bonus tax discount and Energy Incentive that the government is offering and will be considering sustainability projects to claim 20 per cent of spending that supports electrification or more efficient energy use,” said Ms Fitzgerald.
“The $20,000 instant asset write-off for small businesses continuing until the middle of next year is also relevant to YREC and our tenants assisting businesses to deduct the full cost of assets up to that price that was installed or ready for use before that date.”
Small business innovation in the field of artificial intelligence is encouraged with support on offer for adopting artificial intelligence technologies to streamline business processes and improve competitiveness.
Small business voices are set to be at the forefront of systemic change with the Australian Competition and Consumer Commission (ACCC) also establishing a complaints mechanism for small business advocacy groups.
The Australian Small Business and Family Enterprise Ombudsman Bruce Billson said the Budget helps small businesses with contemporary challenges.
“There is support for small and family businesses to tackle immediate pressures, particularly with high energy input costs, an asset write-off boost to help re-equip and invest in productivity, tax administration changes that will help with vital cash flow challenges and much-needed advice to deal with cyber security fears,” he said.
“Energising enterprise can deliver a stronger economy and these measures are a step towards delivering that.”
