Our thoughts on the Federal Budget

South Australian Business News  •  Analysis  •  Economy
Anthony Caldwell
Wednesday, May 15th 2024

Photo — Facebook, Jim Chalmers

The South Australian Business Chamber, representing businesses right across the state is dissapointed over the limited allocation of funds to the small business sector in the 2024 – 2025 federal budget, as announced by Treasurer Jim Chalmers on Tuesday.

The budget which provided negligible support’ for businesses emphasised the need for the state government to step up when it hands its budget down in June. 

While we appreciate the extension of the instant asset write-off, an energy rebate of $325 falls far short of addressing the challenges confronted by SA businesses who have been experiencing the highest energy bills in the country.

This rebate equates to around 3% of the average electricity bill for small businesses. 

Last year, the state government matched the energy rebate provided by the federal government for South Australian businesses. This year, we have advocated for a further doubling to $1300 in 2024 – 2025, given the substantial energy price hikes small businesses have endured over the past two years.

It’s vital that the State Government hears our call for reforms to payroll tax and significant investment in the small business sector to help unlock productivity in the upcoming state budget.

We have submitted a comprehensive set of 12 recommendations to be considered in the budget, and we urge the South Australian Government to prioritise the urgent needs of the business community.

The Chamber’s March Quarter Survey of Business Expectations, conducted in partnership with William Buck, revealed that 77% of respondents identified the cost of doing business as their foremost challenge.

Given the reported surpluses in both federal and state budgets, there is a clear opportunity for both governments to support businesses during this prolonged period of challenging trading conditions.

Author

Anthony Caldwell

Manager, Marketing, Media, Communications
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