This week, Federal Treasurer Jim Chalmers unveiled the allocation of Commonwealth funds in the 2024 – 2025 budget. The Treasurer described it as a ‘responsible’ budget, aiming to combat inflation, with notable initiatives focused on easing cost-of-living pressures, housing construction, and renewable energy investment.
While there are commendable initiatives in the budget, it falls short of addressing the cost challenges many businesses currently face, nor does it promote innovation and productivity in the small business sector.
Outlined below are the key initiatives for businesses:
Energy Bill Relief: Businesses can anticipate a $325 contribution towards their energy bills from the federal government over the financial year. The South Australian Business Chamber has advocated for the State Government to increase this amount to $1300 in the state budget.
Instant Asset Write-Off: Small businesses with an aggregated annual turnover of less than $10 million will continue to benefit from an immediate deduction of the full cost of eligible assets valued at less than $20,000, first used or installed ready for use by 30 June 2025.
Building Women’s Careers: The establishment of the Building Women’s Careers program aims to drive structural and systemic change in work and training environments, particularly in traditionally male-dominated industries of national priority, including clean energy sectors.
Extension of Small Business Support Services: The Small Business Debt Helpline and the New Access for Small Business Owners program will persist in providing financial counselling and mental health support for small business owners.
Increased Funding for Fair Work Ombudsman: Boosted funding will enable the Fair Work Ombudsman to assist small business employers in complying with recent changes to workplace laws.
Additional Support for Administering Paid Parental Leave: $10 million will be allocated to provide extra assistance for small business employers in administering the Paid Parental Leave scheme.
Infrastructure Upgrades: Funding allocations have been made for road infrastructure upgrades, including $120 million for the Mount Barker and Verdun Interchanges and $100 million for enhancements to the South Eastern Freeway.
While businesses will appreciate the extension of the instant asset write-off, the $325 energy rebate falls short of addressing the significant challenges faced by South Australian businesses grappling with the highest energy bills in the nation.
Now more than ever, it’s crucial that the Chamber’s calls for reforms to payroll tax and substantial investment in the small business sector are considered by the state government in the upcoming budget.
