Budget to provide boost to small business, says ASBFEO

The most significant benefits for small business from this year’s budget are tax cuts, an increase to the instant asset write-off, increased infrastructure spending and investment in apprenticeships, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said.

"We are pleased the instant asset write-off has been increased to $30,000 and expanded to businesses with a turnover of up to $50 million," Ms Carnell said, adding that the ASBFEO had hoped the threshold was higher to capture capital intensive businesses, such as primary producers. 

Discussing personal tax cuts, Ms Carnell said that tax cuts to more than 10 million taxpayers means more money in people’s pockets, which means more capacity to spend in their local small businesses.

She also noted that an increase in infrastructure spending – $100 billion over 10 years – is a positive for all Australians and particularly for small to medium enterprises (SMEs).

"It is vital the government ensures that infrastructure projects are broken down into smaller contracts to allow SMEs to directly tender. We need to give SMEs the opportunity to grow their businesses and increase their capacity so they can become the big businesses of tomorrow," Ms Carnell noted. 

"It is also imperative that subcontractors working on these infrastructure and other projects are paid appropriately and on time. The government announced previously it would move to pay head contractors within 20 days and require them to pay their subcontractors on the same terms."

She explained that a successful infrastructure framework needs a suitably skilled workforce.

"We are pleased to see investment in vocational education and training, which includes 80,000 new apprenticeships in industries with skills shortages," Ms Carnell added. 

Finally, the $2.3 million investment to establish an e-invoicing platform, she said, would provide the opportunities for small business suppliers to be paid promptly.

"Small businesses in Australia – the engine room of the economy – and some of these budget initiatives will give them the opportunity to increase productivity, improve competitiveness and boost employment opportunities," Ms Carnell said.