What Australian small companies wish to see this federal price range

Over the previous 12 months, Australian companies have been via many ups and downs. From managing new COVID-19 variants and the related lockdowns and restrictions, to tragic pure disasters. Now, we’re seeing huge shifts as worldwide journey reopens and the economic system begins to bounce again.  With small companies now going through new challenges too, like rising prices and expertise shortages, they might be seeking to this 12 months’s federal price range for assist to navigate the 12 months forward.

So, what precisely do they wish to see on this 12 months’s price range on Tuesday 29 March? We surveyed over 500 Australian small companies to seek out out simply that. Right here’s what’s on the highest of their lists this time round.

Ongoing COVID-19 assist

Whereas the economic system is displaying optimistic indicators of restoration, many Australian small companies are nonetheless feeling the affect of years of lockdowns and different restrictions. 1 / 4 (25%) wish to see reduction packages for industries nonetheless being impacted by COVID-19 within the price range and half (49%) of these surveyed see recovering from the impacts of the pandemic as a high precedence for this 12 months. 

In the meantime, many say their greatest concern (38%) shouldn’t be with the ability to get well from these broad-reaching results in any respect. Others are additionally fearful about future COVID-19 associated challenges, with 1 / 4 (25%) involved a couple of lack of future assist packages – for any new strains or outbreaks to come back.

Assist with digital instruments and processes

The overwhelming majority (70%) of these surveyed imagine a price range that prioritises small enterprise digitisation is necessary. Some even recognized organising new digital methods as being a high precedence (16%) for this 12 months. This means there’s room to assist extra small companies in seeing the advantages of digital instruments and processes. 

Curiously, regardless of eager to see assist for digitisation within the price range, 4 in 5 (79%) have issues about, or don’t think about expertise necessary in, the success of their enterprise. Contemplating previous Xero analysis discovered extremely digitalised small companies fared higher all through the pandemic, there’s alternative to assist extra get on board. So what is going to make a distinction? A 3rd of respondents (33%) imagine a money rebate or grant to spend on expertise would assist them use extra digital instruments (like eInvoicing) of their enterprise.

Tax cuts, incentives and different direct monetary assist

It’s no shock that small companies need assist with their backside line after the monetary challenges of the previous 12 months. 4 in 10 need this 12 months’s price range to give attention to tax cuts or incentives, whereas 1 / 4 (26%) would additionally prefer to see wage subsidies. Specifically, when reflecting on previous budgets, company tax price discount (13%) and instantaneous asset write off extension (13%) have been two key price range measures that small companies say helped in earlier years. 

These monetary breaks may go a great distance in supporting employees or enterprise development, in accordance with the survey. Almost a 3rd of small enterprise homeowners (30%) say they’d like to extend wages if tax cuts had been launched once more, whereas 1 / 4 (27%) would be capable to improve their companies/merchandise. An extra quarter (25%) would be capable to rent extra employees and 26 per cent would improve their gear. 

Measures to assist rent and handle workers

Workers shortages have hit many Australian employers laborious over the previous 12 months. Two in 5 (40%) imagine their enterprise has suffered from a expertise scarcity within the final 18 months whereas one in 5 have distinguished issues round employees shortages (21%) and the price of wages (23%).

To assist handle this, small enterprise homeowners need this 12 months’s price range to incorporate free or low price coaching to upskill and reskill for staff (25%) and incentives to rent employees (23%). 

With the upcoming election this 12 months, small companies could also be trying extra carefully on the federal price range and opposition reply for a sign of what’s to come back. They’ll even be turning to their advisors for assist decoding how each budgets may affect them. Many respondents (37%) use their accountant or bookkeeper’s experience to know what authorities insurance policies imply for his or her enterprise.

What do you wish to see on this 12 months’s federal price range and opposition response? Tell us within the feedback what measures you assume will assist your online business as we navigate 2022.