Budget

TRANSCRIPT: 2024-25 federal budget, small business mental health in Bathurst, small business procurement

Emily Carter — Thu, 16 May 2024 07:07:42 +0000

TRANSCRIPT: 2024-25 federal budget, small business mental health in Bathurst, small business procurement Emily Carter Thu, 05/16/2024 - 17:07

16 May 2024

TRANSCRIPT

Australian Small Business and Family Enterprise Ombudsman Bruce Billson interview with Dusty Fitzpatrick.

Radio 2BS Bathurst

Subjects: 2024-25 federal budget, small business mental health in Bathurst, small business procurement

Dusty Fitzpatrick

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson says the federal budget offers targeted measures to help small and family businesses deal with current pain points and headwinds. I'm pleased to say he joins us now. Bruce, good afternoon.

Bruce Billson

Dusty, good to be with you and your listeners.

Dusty Fitzpatrick

It's lovely to have your company this afternoon, Bruce. The federal budget offers a $325 energy bill relief for small businesses. How significant is this relief for businesses facing high input costs at the moment?

Bruce Billson

Look, any help is welcome. Small businesses have got higher input costs squeezing their margins. You've got the budget forecasting a tapering, you know, pretty sluggish growth. It's tough to make a dollar out there Dusty and there’s no sloppy margins for any small business that I've been speaking with or that I've heard about. So, these assistances are important.

It's worth noting that not every small business will be eligible. So, it's largely those operating out of someone else's premises away from, say, a home-based business or something like that. And that's being worked through by the government. So, you need to be on those business tariffs, I think is a good rule of thumb. So that's about a million of the two and a half million small businesses in Australia.

And the other thing to be alert to is last budget a similar announcement was made at a Commonwealth level and in most cases states and territories also matched to that amount. That's not the case this time around. So, whilst that relief will be there, people might wonder why it's not as impactful on the bill that they get, and that may explain that change.

Dusty Fitzpatrick

The budget also extends the instant asset write-off for another year. How critical is this extension?

Bruce Billson

It's really important for a number of reasons. Right now, we need to be energising enterprise. We need to be giving more encouragement for people to turn an idea into an investment. For business owners to make that big decision to turn scarce resources into new capability, new equipment, new technology to help with the success of that enterprise and the livelihoods that depend upon it.

So having that encouragement to invest in new kit, new plant and equipment, new technology is really an important signal. It's one that was made in last year's budget, although we are just a handful of weeks away from the end of the financial year and everyone's hoping that the legislation authorising that is around, but at least it is continuing into the coming year.

But it also underlines why greater predictability about those sorts of incentives for business owners would be really useful so people can plan for and count on some sort of encouragement to invest in innovation, to invest in improve productivity, to invest in improved business capacity so that they can factor that into these forward times that are pretty challenging right now.

Dusty Fitzpatrick

So, you're hoping that the asset write-off might become, I suppose, a permanent feature?

Bruce Billson

I certainly think it needs to be. And it's a view that's expressed by many small business representative organisations. For that simple reason, Dusty, in the absence of a one-off year-by-year announcement, things go back to the normal state of affairs, which is basically a $1,000 deduction and then you have to run a depreciation arrangement either separately or through what's called an asset pooling vehicle to get that that kind of assistance through your profit and loss. That's not ideal. That is far from giving predictability and certainty where a business can plan in a sure-footed way for important investments that uplift the capacity, the productivity and drive innovation in that business.

So, having it sort of locked in as an ongoing feature and even expanding its reach. At the moment it's $20,000. A lot of your listeners will think, well, that'll get you about a third of a SUV four-door pickup truck for a tradie. It might not buy that new machine that you need in your factory. You could well extend the $20,000 out and even look at whether the $10 million turnover cap is something that could be extended as well.

Dusty Fitzpatrick

Bruce, we also saw some funding allocated for mental health support. We know the cost-of-living pressure is really affecting everyone at the moment, but particularly having an impact on small businesses.

Bruce Billson

It's really important these two measures. Now, sadly, they are a sign of the times that the economy is more challenging. And we know owning and leading a business is a big responsibility Dusty, and it's one that brings a lot of heavy decision making, a lot of reflection. And also for the business owner, often their personality, their sense of being, is interwoven into the business and its success. And then they know the people that are in the business, their livelihoods depend on it.

And we've even seen through looking at some research that about a third of small business owners operating in the greater Bathurst area have been told by a clinician that they have not only a long term health condition, but about a quarter have had been identified as having a health condition related to their emotional and mental wellness.

So that's really significant. And we look at the types of industries where that can impact, you know, in hairdressing and beauty services, automotive repairs, construction. That's what the statistics are telling us about the Bathurst small business community, which is actually a little bit older than is the case across the country. More than half are aged over 50, with only 6% under the age of 30. Now it's about 8% nationally.

But this tells us that there's pressure points and challenges and that's why extending the funding for the New Access for Small Business Owners coaching support line, which is designed to help business owners understand their own mental wellness, identify when they're starting to feel pressure or overwhelmed, and how to get back into a space where they can make good decisions given the big responsibility that they carry.

And then the other part of that program, Dusty, sadly, is where it all gets a lot in financial terms. And there's a Small Business Debt Helpline that's been extended for another year to help businesses navigate when debt is really crippling the business and there's an important discussion about how do address that debt for the business owner.

Dusty Fitzpatrick

It is an important change there, Bruce, there is so much to get through this afternoon, but we'll move on now to the procurement report. The Government's response has been released.

Bruce Billson

We were we were underwhelmed by the government's response. I mean, it's an enormous missed opportunity to meaningfully improve the opportunity for competitive small businesses and family businesses to become a supplier to the government. At a time when growth in the economy is really, really slowing, the budget foreshadowed quite an expansion in the types of things government was involving itself in and therefore opportunities for people to supply to government.

We were asked by successive governments - so this was a bipartisan request that spanned the previous government and the new government - to have a look at how those procurement rules, those purchasing rules, were operating in terms of support for small business, whether certain provisions within them are achieving their objectives and what improvements could be made.

And what we found overwhelmingly is small businesses they felt supplying to the Commonwealth was very much an ‘in crowd’ game.

For people that knew the rules, knew the way the Commonwealth operated, knew where to look to find where opportunities might be advertised, knew who to talk to when there’s specifications being developed. They were pretty okay with how they interacted with the Commonwealth.

But if you were a business that hadn't previously been a supplier to the government, this is a bewildering space. Really hard to understand how to get involved. And then under those procurement rules, Dusty, there's certain exemptions and encourage meant for Commonwealth public servants to consider Indigenous business supplies and small business supplies as part of that work. And those exemptions are really hard to navigate. Hard for the procuring officials, hard for the businesses to know how to do it.

And we thought there was an enormous opportunity to improve that small business supply possibility into the Commonwealth, particularly when governments are talking about a Future Made in Australia and there's programs like the Buy Australian Plan. We thought there was some really sensible steps that could be taken to help bring those ambitions to life. But sadly, they weren't picked up by the government and we think there's plenty of work still to be done there.

Dusty Fitzpatrick

Bruce, there’s so much to get through this afternoon, really appreciate your company on the program this afternoon.

Bruce Billson

Dusty, great to be with you and your listeners.

Dusty Fitzpatrick

Australian Small Business and Family Enterprise Ombudsman Bruce Billson joining us on live and local.

TRANSCRIPT: Budget 2024-25

Emily Carter — Wed, 15 May 2024 04:33:40 +0000

TRANSCRIPT: Budget 2024-25 Emily Carter Wed, 05/15/2024 - 14:33

15 May 2024

TRANSCRIPT

Australian Small Business and Family Enterprise Ombudsman Bruce Billson interview with Stephen Cenatiempo.

Radio 2CC Canberra

Subject: Budget 2024-25

Stephen Cenatiempo

One of the groups I always look at with regards to the budget and whether or not they benefit from it is small business, because if small business is going well, then Australia's going well. And sadly, small business at the moment isn't going anywhere near as well as it should. Bruce Billson is the Australian Small Business and Family Enterprise Ombudsman and joins us now. Bruce, good morning.

Bruce Billson

Good morning to you Steve and your listeners.

Stephen Cenatiempo

Overall, not a bad budget for small businesses, there’s a fair bit of targeted relief there.

Bruce Billson

There's a little bit in there. I don’t think small businesses will be punching the air with excitement, thinking that it's a real game changer. But the budget does offer some support for some real pain points right now, and there are many.

Your earlier callers and people texting in talking about energy relief. Well, you can imagine if you're running a cafe in Braddon and you've got fridges and cooking technology and all sorts of things going on, your energy bills have gone through the roof. So, there is some relief there. That’s $325, for not all small businesses. About a million of the two and a half million small businesses look like they're eligible for that. Different from last year, though, Stephen, where states and territory governments were matching that Commonwealth contribution. So, this looks like Commonwealth going solo. So, there's a bit of a bit of relief there.

And probably the other big areas are some help to navigate increasing regulatory imposts. A lot of businesses are sort of feeling really bound up in red tape. There's been complexity added to workplace relations. Well, there's some help there to help the Fair Work Ombudsman explain what a small business needs to do. There’s stuff like that.

What's not there, though, is what's going to shift the dial. Right now, we need people, whether they're in small business or thinking about going into small business, going ‘Yeah, I'm going to turn that idea into investment. I'm going to recruit that extra person. I'm going to invest in some technology.’

Now, the only sort of message that that matters and that's what the nation needs is the instant asset write off. That's been maintained or extended. That’s $20,000. But even in last year's budget there was some tax incentives for people investing in technology to improve productivity and innovation. That's not there.

Small businesses doesn't need only to have less headwinds in their face. They actually need some wind in their sails right now. And that's not really prominent in this budget.

Stephen Cenatiempo

And that's and that's the key there. And $325, while nobody's going to sneeze at that, it's not a great deal of money and it only applies to a million small businesses where the $300 household rebate everybody gets whether they need or not.

I do want to touch on one thing, though, particularly in the current environment, the $7.7 million over the next couple of years to extend funding for the New Access for Small Business Owners program by Beyondblue. That is critical.

Bruce Billson

Yeah, really important. And it sits alongside the Small Business Debt Helpline. Now these are important measures, really good programs, and I'm delighted that the government seen fit to extend them.

That's emotional wellbeing support. That's a coaching program for a business owner who already knows Stephen that it's a big responsibility to run a business but is overwhelmed by many of the pressures that are on them right now. The sense that their own identity is interwoven into their business and there's lots of livelihoods counting on them. That can be overwhelming and the New Access to Small Business Owners program supports that. Supports those people knowing more about themselves and being in the best place they can be to make those important business leadership decisions.

And the Small Business Debt Helpline, sadly, is a sign of the times. For many new customers aren't knocking their doors down. There's not strong profits for the small business end of town even though the budget reports more receipts from big corporate taxes and the like. Managing those debt levels are quite difficult.

And even when small business think about programs like the Future Made in Australia program, big numbers, big numbers for economy changing measures and let's hope that’s not something that businesses are going to expect on the never, never.

But little steps like the Buy Australian Plan giving businesses a better chance to get a piece of the government procurement action. We've recommended a range of measures there to even emphasise the retained economic benefit of engaging a small business or supplying the Commonwealth. And sadly, there's nothing in there either. So even where that big growth is in the Government itself, the prospects of a small or family business getting a piece of that action as a supplier, we thought that could have been really worthwhile and simple. And frankly, better use of existing resources measures to help that support the business community. But that's not there.

Stephen Cenatiempo

Yeah, and it's interesting you say that because that kind of stuff is almost zero cost, but the benefit is exponential. Bruce, always good to talk to you. Thanks for your time this morning.

Bruce Billson

Thanks Steve. Best wishes to you and your listeners.

Stephen Cenatiempo

Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman.

Budget Brief 2024-25

Emily Carter — Tue, 14 May 2024 11:19:50 +0000

Budget Brief 2024-25 Emily Carter Tue, 05/14/2024 - 21:19

14 May 2024

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson says tonight’s federal Budget offers targeted measures to help small and family business deal with current pain points and headwinds.

“Small and family businesses facing punishing input costs that are squeezing margins will welcome the modest energy bill relief of $325,” Mr Billson said. “Every saving helps the small businesses who are doing it tough in our community.

“Matching last year’s Budget, the money will be deducted from the power bills of one million eligible small businesses as part of a cost-of-living relief package.

“Small and family businesses will be relieved by the decision to extend the instant asset write-off for a further 12 months for businesses with a turnover of up to $10 million, allowing them to deduct $20,000 for eligible assets.

“But we note the instant asset write-off measure announced in last year’s budget has still not been passed into law with just six weeks left of this financial year, creating some uncertainty for small businesses.

“This uncertainty has highlighted the benefits of greater predictability to support business planning and investment, reflected by small business groups calling for it to be made permanent.

“Particularly important is the $7.7 million over two years to extend the funding for mental health support through the New Access for Small Business Owners program created by Beyond Blue and $3.1 million over two years for the Small Business Debt Hotline delivered by Financial Counselling Australia.

“We have seen a 20 per cent increase in calls to our helplines over the past year from small businesses struggling to manage their debts. It is vitally important that small business owners take time to focus on their own mental and financial wellbeing and these free services are provided by people who understand the realities of running your own business and can offer practical help.

“Tonight’s Budget also expands the scope of existing funding for 91��Ƭ�� to support small business in a dispute with the Tax Office to include unrepresented business dealing with a broader range of business disputes, including those involving franchising, and provides funding to review the adequacy and effectiveness of dispute resolution tools available to 91��Ƭ��’s assistance service.

“There is also $20.5 million for the Fair Work Ombudsman to help small business employers comply with the increasingly complex workplace laws and $10 million to assist smaller employers with administering the revised paid parental leave scheme.

“We welcome $8.6 million a year for key regulators to enforce mandatory codes that oblige telecommunications, banking and digital platform service providers to do more to guard against the harm caused by scams that are hurting too many small businesses.

“The budget also includes additional funding to improve the uptake of eInvoicing, the effectiveness of the payment times reporting framework and implementation of franchise reforms.

“While income tax cuts will drive demand, the budget forecasts that overall economic growth will be weaker, which will concern small and family businesses who have been doing it tough.

“Sluggish growth combined with persistently poor productivity, tight labour markets, supply chain challenges, and the lagging effects of high inflation, plus 13 interest rate rises, are taking their toll on small and family businesses.

“We need to shift the mindset from minimising headwinds to maximising the ‘wind in the sails’ of our hard-working small and family businesses.

“Some 43 per cent of small businesses were not profitable in the last full tax year. Three-quarters of self-employed people, for whom their business is their full-time livelihood, take home less than average total weekly earnings.

“It is often said that small business is the engine room of the economy. We must ensure that small and family business can fire on all cylinders – not have a cylinder taken out.

“We need to get the risk and reward balance right, ensuring small business and entrepreneurship is a really attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.

The Government’s small business statement can be found at https://budget.gov.au/

MEDIA CONTACT: 0448 467 178