Tuesday, June 18, 2024

Budget could do more to supercharge small business

The 2023 Federal Budget includes a number of measures that will help ease the cost of doing business amid a turbulent economic environment, and places a clear focus on cost-of-living relief for Australian households.

However, the Franchise Council of Australia believes that there is more to do to address economic challenges, especially for small businesses.

“98% of businesses in Australia are small and medium sized enterprises and franchising is the predominant business model in the sector”, says the Franchise Council of Australia CEO Matthew Monaghan.

“As identified in the most recent ‘Pulse Check’ survey from FRANdata, franchised small businesses are grappling with rising business costs and turbulent economic headwinds, but the most critical issue is workforce shortages”, said Mr Monaghan.

“We welcome the range of measures introduced by the Albanese Government to support the small business community, including the Energy Price Relief Plan, continuation of the Instant Asset Write-off and the introduction of the Small Business Energy Incentive.”

“However, more can be done to help supercharge the main engine of the Australian economy – small businesses,” he said.

“It is disappointing to see that the Federal Government has revised down the 2022/23 permanent Migration Program planning level from 195,000 to 190,000, given acute workforce shortages across many industries. However, the allocation of 137,100 places to the ‘Skills’ migration stream is welcome.

“Furthermore, announcements relating domestic skills development are very positive, including the prospect of $3.7 billion in additional funding for vocational education and training.”

“The economic picture outlined in the Budget highlights an array of risks. Regulatory overreach by government represents a real threat to the confidence and continued operation of small businesses across Australia,” Mr Monaghan said.

“We look forward to working with the government to build on this Budget and address the challenges facing franchised small businesses across Australia.”

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