Next week, the Australian Labour government will present its highly-anticipated budget update, which is expected to reveal a remarkable improvement in the country’s financial situation.
A surge in tax revenue has led to an unexpected increase in the government’s coffers, enabling substantial enhancements to the budget’s bottom line. Despite these favourable developments, given its significant fiscal challenges, the government remains cautious about the country’s economic outlook.
Treasurer Jim Chalmers has been working tirelessly to create a plan that balances fiscal restraint and responsibility in preparation for his second budget since taking office in May of last year. Given the potential risks and uncertainties that still loom large, he has underscored the importance of cautious and prudent management of the country’s finances.
Geopolitical tensions and trade disputes have presented significant hurdles that require careful navigation. As a result, the government’s budget update is expected to strike a balance between addressing immediate needs and investing in long-term growth and resilience, recognising the importance of sustainable and responsible economic management.
As the Australian Federal Budget announcement approaches, businesses and entrepreneurs are eagerly awaiting government support to help protect and nourish Australian-founded and owned ventures. Due to be announced on Tuesday, this year’s budget is expected to provide a range of initiatives that will support and incentivise sustainable practices, innovation, and expansion for Australian businesses.
Brodie Haupt, CEO and co-founder of WLTH believes that the potential $20,000 incentive for small businesses that invest in energy-efficient equipment is a great opportunity to reward businesses investing in sustainable practices.
He stated, “The government may also extend the productivity measure that allows businesses to fully expense the cost of depreciable assets in the first year of use, as this is set to expire on June 30 this year. That said, they may discard it altogether due to inflationary pressures. The big issue the government faces is the cost of living and the implications this has on individuals and businesses alike. As SMEs are most of our country’s makeup, they’re walking a tightrope between easing pressure without increasing inflation.”
Michael Tutek, Co-Founder and CEO of Preezie, has several suggestions for the upcoming budget that could help Australian businesses and entrepreneurs endure tough economic times and thrive in the years ahead. Tutek recommends that the government offer more comprehensive support for startup initiatives, increase access to public facilities, and offer funding for sales and marketing. Additionally, Tutek suggests that the government should offer expansion support for Australian businesses and provide incentives for collaboration between big businesses and startups.
“To start, the Federal Government should consider providing more comprehensive support for startup initiatives across the country. Although existing programs like LaunchVic’s 30×30 scaleup program are valuable, they are typically run by state governments. More support could empower Australian startups and help them grow, he said.
“Another way the government could assist is by increasing access to public facilities. In the post-COVID era, there is a slow ‘return to office’ in central business districts. Allowing businesses greater access to shared office spaces and facilities could revive urban areas and support local businesses like cafés and restaurants.
“Additionally, grants for sales and marketing could help businesses launch and promote new products. While R&D tax incentives are crucial for innovation, supporting sales and marketing efforts could increase the success of local enterprises.
“Finally, the government should encourage collaboration between established businesses and startups. Incentives such as funding collaborative programs or providing tax concessions could drive innovation and support Australian startups. By addressing these needs, the government can help ensure the success and growth of Australian-founded and owned businesses during tough economic conditions.”
Luke Fossett, General Manager of GoCardless Australia and New Zealand, hopes that this year’s budget will address some of the fintech sector’s needs, such as easing the red tape stifling Consumer Data Rights. Fossett also believes that the budget should focus on educating businesses and consumers about the new PayTo technology and encourage its adoption.
Finally, Fossett recommends that the budget should lend greater assistance to businesses looking to modernise, innovate or survive, especially during the current cost of living crisis.
“With many SMBs struggling in the current cost of living crisis, the Federal Budget should also lend greater assistance to businesses looking to modernise, innovate or survive. For example, the last budget’s $62.6 million grant funding for SMEs looking to improve energy efficiency was a great incentive, but more could be done.”
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
