We’ve had the big reveal for the 2022/23 Federal Budget. Here’s how small and medium enterprises can benefit.
In essence, there are three main ways the Albanese Government’s 2022/23 Federal Budget has offered support to SMEs. Let’s break it down.
The new Labor Government’s second Federal Budget has delivered several initiatives focused on Australia’s SME community:
The cost of living support doled out in the Federal Budget won’t send a tsunami of cash flowing into households. Instead, it’s more of a trickle.
Even so, energy price relief, lower out of pocket health costs and an increase in JobSeeker payments especially for over-55s, can offer indirect benefits to SMEs.
There’s been a lot of belt tightening among consumers over the past year since rates started heading north, and any initiatives that free up extra cash for discretionary spending have the potential to bring more revenue into SMEs.
It’s probably fair to say that Labor has learned (the hard way) that property is a favourite investment among Australians, and tinkering with the tax treatment of their favourite is a high risk strategy for any government.
So, quite sensibly, the Labor Government has left negative gearing and capital gains tax discounts untouched. That’s great news for many Australians – not just SMEs.
Commercial property is a popular investment, and in recent years we have seen a remarkable trend for SMEs to buy rather than rent their commercial premises. This doesn’t just provide certainty of tenure. According to Angus Raine, Executive Chairman, Raine & Horne, it also allows business owners to benefit from the investment in their enterprise combined with the value of the commercial property while enjoying valuable tax breaks.
More broadly, the Budget forecast is for continued economic growth (albeit at a slower rate this year) coupled with low unemployment. Both are good news for SMEs.
With many experts predicting a fall in interest rates within the next 12-24 months (something we’re already seeing in fixed home loan rates), now could be the ideal time to give your SME the certainty of long term premises without the uncertainty of rent hikes.
Talk to your local Raine & Horne Commercial team to know the properties available in your area. It’s often surprising to discover how affordable commercial property can be.