What’s in the 2023 Budget for small business?

- May 10, 2023 3 MIN READ
Jim Chalmers 2023 Budget

While the 2023 Budget has provided some good news for small businesses and startups, with its Industry Growth program and investment in AI tech, the announcements have been met with a lack of enthusiasm from members of the small business sector.

Chris Dahl, CEO of fintech Pin Payments has described the budget as a series of hits and misses.

“The best news for startups from this budget comes from its budget papers to establish a new Industry Growth Program worth $393.4 million, to support Australian startups and SMEs to ‘commercialise their ideas and grow their operations’. Investing in tech, startups and new business is critical right now to put Australia on par with other countries and to ensure our government is investing in local talent and businesses.”

While Dahl welcomed the investment in tech he was critical of the temporary increase to the instant asset write-off, which upped the ante to $20,000 for small businesses to invest in operations, describing it as a “menial effort”.

“Small businesses need much more support after years of economic hardship, in order to support more Australians in jobs and boost the economy,” Dahl said.

Small business concerns ignored

Thomas Fu, founder of Motor Culture was less critical in his response, suggesting the budget addressed “the concerns of many everyday Australians with regards to inflation and rising costs”. However, Fu said the budget still failed to deliver on really supporting small businesses.

“The government’s Industry Growth Program supports new ideas and Aussie startups but does not consider the concerns of existing small businesses who have tirelessly battled through years of economic hardships due to the pandemic, inflation and global tech lay-offs,” he said.

Fu suggested the budget ignored many of the small business community’s concerns.

“While cash has been splashed in some areas by Chalmers, for the most part, SMEs have been left to fend for themselves in a time of immense economic uncertainty.

“The renewable energy superpower scheme seems to be the only area of support for small businesses which, while encouraging from an environmental perspective, requires significant capital investment from startups during trying economic times,” Fu said.

The founder welcomed the extension of the instant asset write-off, but said it was disappointing that the digital economy did not receive more attention or investment.

“Investment in technology and the digital economy is absolutely vital for small and medium businesses and for the prosperity of the Australian economy,” he said.

Cyber security support for small business

One area of the budget that all agree is a great investment was the government’s pledge to increase support for small business cyber security.

“After a perilous year of cyber scams, it’s great to see increased investment in cyber security with the government investing $23.4 million over three years to support small businesses to build in-house capability to protect against cyber threats. Cyber threats are increasingly becoming an irreversible threat for SMEs and more must be done to ensure hard-working Australians are not scammed in business,” said Caitlin Zotti, co-CEO of Pin Payments.

What about women in business?

Zotti also welcomed the announcement of initiatives that will attempt to deliver gender equity and equality by publishing the gender pay gap – but suggested more practical initiatives that elevated women at work would have been a better use of funds.

“We had hoped to see other initiatives which encouraged employers to train, retain and hire women in business, especially in skills shortage areas in this budget,” Zotti said.

This article was first published on Kochie’s Business Builders, read the original here.

Join the soloist movement. Whether you are new to Flying Solo or looking to grow your business, our membership options will help you attract more leads, grow your network and sharpen your business skills.  Sign up to our newsletter to get the latest news and advice straight to your inbox.

Now read this:

Five smart ways to grow your business, no matter your budget

Here’s why you need to upgrade your Flying Solo membership pronto!

  • Share your business journey in an exclusive member profile
  • Get free lifetime access to our Going It Alone digital course
  • Participate in members-only events and experiences
  • Boost your business’ visibility with a Directory listing

$149.95 + GST
Billed annually
  • Andrew Caska

    Caska IP Patent Attorneys

    'Flying Solo opened up so many doors for us - I honestly don't know where I'd be without it"