Introduction
The Australian Federal Budget for 2024-2025 has delivered a suite of measures aimed at strengthening the nation’s small and medium business sector.
It’s a well-known truth that Australia’s small and medium businesses form the backbone of our economy. The budget offers much-needed direction through these challenging times, while paving the way for future growth and resilience in our economy.
Looking ahead, the budget’s emphasis on promoting growth, innovation, and global market access underscores the government’s commitment to fostering an environment where small and medium businesses can thrive.
From defence industry grants and procurement opportunities to enhanced export support, these measures aim to unlock new avenues for expansion and diversification, fueling the entrepreneurial spirit that drives our nation’s economic progress.
Key takeaways for SMBs
- Relief for financial pressures and mental health challenges
- Reduced administrative burdens and compliance costs
- Initiatives promoting growth, innovation and global market access
- Boosted cyber resilience capabilities and support
- Empowerment of Indigenous entrepreneurship
Mental health assistance for SMB owners
The government recognises the unique challenges faced by small and medium business owners, including mental health and financial well-being. To address these concerns, the budget allocates:
- $10.8 million to extend the NewAccess for Small Business Owners program, offering tailored, free, and confidential mental health support. This program provides evidence-based coaching and support to help small business owners manage stress, anxiety, and depression.
- Funding to continue the Small Business Debt Helpline, a national, free, and confidential financial counselling service. This helpline offers practical advice and guidance to small business owners struggling with debt, cash flow issues, and other financial challenges.
At AVA Advisory, we understand that financial pressures and mental health challenges can be overwhelming for small and medium business owners.
Our team of small business debt advisers are here to help you navigate these difficulties and find the right solutions for your unique situation.
From debt management strategies to business support resources, we’ll work closely with you to alleviate these burdens and help you regain control of your business’s financial future.
Reducing administrative burdens
The budget aims to simplify processes and cut compliance costs for small and medium businesses, recognising the disproportionate impact of administrative burdens on these enterprises:
- Abolishing 457 nuisance tariffs, the largest unilateral tariff reform in two decades, will simplify Australia’s trade system and reduce its complexity, which can be particularly burdensome for small businesses.
- Investing $288.1 million to expand the Digital ID system, reducing the need for small businesses to store and protect customer and employee data. With a secure and streamlined digital identity system, businesses can focus on their core operations while ensuring compliance with data protection regulations.
- Providing $13.2 million over three years to increase the number of residential builders accredited under the Work Health and Safety Accreditation Scheme. This initiative aims to improve safety standards in the construction industry while reducing the administrative burden for small and medium residential builders seeking accreditation.
By reducing administrative burdens, the government aims to create a more favourable operating environment for small and medium businesses, allowing them to redirect resources towards growth and innovation.
Navigating the complexities of administrative processes and compliance requirements can be daunting for small and medium businesses.
At AVA Advisory, we specialise in streamlining these processes, helping you reduce your administrative burdens and freeing up valuable time and resources to focus on growing your business.
Promoting growth and innovation
The government recognises small and medium businesses as job creators and innovators, supporting their growth and diversification through various initiatives:
- $183.8 million in defence industry grants, including the new Defence Industry Development Grant Program. The program aims to reduce the administrative burden on small and medium businesses and provide greater opportunities for tailored financial support, enabling these enterprises to contribute to Australia’s defence industry capabilities.
- The Buy Australian Plan simplifies procurement processes and increases opportunities for small and medium businesses to win government contracts. The government aims to level the playing field and foster growth for domestic small and medium enterprises by streamlining the procurement system and promoting local suppliers.
- $10.9 million to enhance the Go Global Toolkit online platform, supporting businesses in exporting their products and services to international markets. The initiative recognises the importance of export opportunities for small and medium businesses, providing them with resources and guidance to expand their global reach.
The government’s focus on promoting growth and innovation aligns with the entrepreneurial spirit of small and medium businesses. The budget aims to foster an environment where these enterprises can thrive and contribute to Australia’s economic prosperity by providing financial support, streamlining processes, and facilitating access to new markets.
Fostering a cyber-resilient future
In the digital age, the budget prioritises cyber resilience for small and medium businesses, recognising the critical importance of cybersecurity for enterprises of all sizes:
- $23.4 million for the Cyber Wardens program, providing free online training to promote a cyber-safe mindset among small business owners and their staff. This initiative aims to equip small and medium businesses with the knowledge and skills to identify and mitigate cyber threats.
- $11.1 million for the Small Business Cyber Resilience Service, which helps businesses build cyber resilience and provides support during cyber incidents. This service offers tailored guidance and assistance to small and medium businesses, enabling them to strengthen their cybersecurity posture and respond effectively to potential breaches or attacks.
- $7.2 million for the Cyber Health Check online tool, enabling small and medium businesses to self-assess their cyber security maturity. By evaluating their current cybersecurity practices, businesses can identify areas for improvement and take proactive steps to enhance their resilience.
In today’s interconnected world, cyber threats pose a significant risk to businesses of all sizes.
The budget recognises the unique challenges small and medium enterprises face in cybersecurity and provides targeted resources to enhance their preparedness and response capabilities.
Empowering First Nations businesses
The budget recognises the importance of supporting First Nations businesses, many of which are small and medium enterprises:
- Enhancing Indigenous Business Australia’s ability to invest in First Nations communities and businesses. This initiative provides tailored support and resources to help Indigenous-owned businesses grow and succeed.
- Strengthening the Commonwealth Indigenous Procurement Policy (IPP) program has generated over $9.5 billion in contracts for Indigenous businesses since 2015. The budget seeks to foster economic empowerment and self-determination for First Nations communities by promoting greater participation of Indigenous-owned businesses in government procurement processes.
- Scoping a First Nations Economic Partnership to improve economic outcomes for Indigenous Australians, including small business owners. This partnership aims to identify and address barriers to economic participation, while creating opportunities for First Nations entrepreneurs to establish and grow their businesses.
At AVA Advisory, we are committed to supporting the growth and empowerment of First Nations businesses across Australia.
Our dedicated team understands Indigenous entrepreneurs’ unique challenges and opportunities, and we’re here to provide tailored guidance and resources to help you succeed.
From accessing government initiatives to navigating the complexities of the business landscape, we’ll be your trusted partner at every step so your voice is heard and your aspirations are realised.
The government’s commitment to supporting First Nations businesses aligns with the principles of reconciliation and self-determination.
The budget aims to empower Indigenous entrepreneurs and contribute to the growth of First Nations communities across Australia by providing targeted assistance and creating pathways for economic participation.
