What’s in the budget for small-business owners?

On Tuesday night (25 October), the Australian Labor Party (ALP) released its first federal budget since coming into power in May 2022.

As well as announcing a range of measures to reduce the costs of aged care, health, education and housing, the budget also set out more support for small-business owners.

One of the main announcements for small-business owners is the news that the government will set aside $62.6 million over three years to provide energy efficiency grants to help small and medium-sized enterprises (SMEs) reduce energy use and lower bills. 

The funding will support studies, planning, equipment and facility upgrade projects that will “improve energy efficiency, reduce emissions or improve the management of power demand”.

Treasurer Jim Chalmers also outlined the ALP would provide $3.4 million over four years (from 2022–23) to support the development and delivery of education, technical advice and support services “targeting the needs of small business employers to support the implementation of the Government’s election commitment to legislate 10 days of paid family and domestic violence leave”.

The government will also provide $15.1 million over two calendar years (from 1 January 2023 until 31 December 2024) to extend the Small Business Debt Helpline and ensure that small-business owners can access free mental health and financial counselling support through the NewAccess for Small Business Owners Program.

The NewAccess support program, operated by Beyond Blue, offers free one-on-one telehealth sessions with specially trained mental health coaches providing evidence-based advice on strategies for managing stress.

The program provides small-business owners with up to six structured sessions via telehealth with a trained mental health coach. 

Other initiatives that would benefit small-business owners include:

• The expansion of paid parental leave (reaching six months’ paid leave in 2026) that can be shared between dual-parent families
• A $2.4 billion commitment to extend NBN full fibre access to 1.5 million homes and businesses by 2025
• Outlawing unfair contract terms and making it easier for small and medium-sized businesses to access government procurement contracts

Speaking of the support for SMEs, the Minister for Small Business Julie Collins MP (also Minister for Housing, Minister for Homelessness) commented that the support aims to help small businesses “prosper” and provides a bolster “in recognition of their central role in building a strong national economy”.

“Small businesses are the engine room of Australia’s economy, employing millions of Australians and contributing more than $430 billion to our nation’s economy every year,” Ms Collins said.

“The Government wants to help improve the long-term resilience of Australia’s small businesses and help them bounce back following significant challenges in recent years.”

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson particularly welcomed the mental health and financial counselling support, stating: “For many small and family business owners, their identities are interwoven into their business and the stakes are so much higher than just a job. 

“Many people have invested a lifetime, and in some cases their family home, into building up their business, which amplifies the emotional challenges.

“Small and family business owners are literally exhausted. They are struggling to make rosters work and keep doors open due to labour and skills shortages; grappling with supply troubles that means critical inputs, goods and services are not always available, on edge about cyber security fears and some are fighting floods and other natural disasters.

“We continue to urge the government to support small businesses and believe energising enterprise can deliver a stronger economy.

“Small business is a dynamic and fast-growing sector that allows people with an entrepreneurial spirit to pursue their dreams and energising this will help increase the $438 billion contribution small business makes to the economy.”

Guy Callaghan, chief executive of SME lender Banjo Loans, stated that the budget “goes some way to provide financial and strategic commitment to ensure small to medium businesses (SMEs) are digitally enabled, resilient and have the support, incentives, skills and training needed to be competitive in an uncertain future”.

He welcomed the cheaper childcare and greater paid parental leave, which is expected to increase the available workforce to the tune of 37,000 extra workers, as well as boosts to the skilled migrant program, which could help plug the skillsforce hole.

Meanwhile, the managing director of aggregation company Loan Market, Andrea McNaughton, said small businesses and self-employed workers would likely need assistance to navigate the challenges of the coming years, which opened the door for brokers.

“The government is seeking to address national debt and also put a handbrake on inflation by cutting spending,” she said.

“With the cost of living still rising, consumers will continue to review their spending, lessening the amount of money circulating in the economy.

“There’ll be a role to play for brokers in assisting SMEs and self-employed clients through the immediate and medium-term challenges with loan reviews, cashflow-lending and other assistance.” 

Find out how brokers can write SME business at The Adviser’s upcoming SME Broker Bootcamp, which will delve into why diversifying is now more important than ever for mortgage brokers and offer a blueprint on how you can revamp your brokerage and offer clients a holistic range of finance products.

The Bootcamp will arm brokers with a simple yet powerful road map that breaks down and quantifies the impacts of diversification on a brokerage, the financial gains and risk/reward payout of diversification, and how long it could take, along with practical tips from other brokers who have diversified successfully.

Click here to register for free and make sure you don’t miss out!

For more information, including agenda and speakers, click here.

[Related: Labor unveils affordable housing push in budget 2022–23]