2024 Federal Budget Small Business Recap

Last night, on 14 May the Australian Government handed down the 2024 Federal Budget, with the support for the cost-of-living crisis, skilled worker shortage and increasing cyber security all included in their initiatives. But what is in The Budget for our everyday Australian small business owner? 



Here is our simple breakdown on how the 2024 Federal Budget may impact your small business. 

Key Takeaways for Small Businesses: 

1. Tax Benefits & Incentives 

From 1 July 2024, SMEs stand to benefit from broad tax cuts and specific incentives designed to boost cash flow and reduce overhead costs. The continuation of the $20,000 instant asset write-off for another year allows businesses with a turnover of less than $10 million to immediately deduct the cost of new assets. 

2. Energy Bill Relief 

A notable $3.5 billion has been directed towards energy bill relief for small businesses, recognising the significant burden that energy costs can pose. Starting from July 2024, eligible SMEs will receive a rebate of $325 to help manage these expenses. It is important to note this rebate is only available for small businesses who’s energy consumption falls under the state determined threshold. 

3. Cybersecurity Support & Education 

As businesses increasingly rely on digital solutions, cybersecurity has become paramount. The budget addresses this by allocating funds towards the Cyber Wardens program and the Cyber Health Check tool, helping businesses protect themselves against cyber threats and build a resilient digital infrastructure. 

4. Investment in Skills & Education 

Acknowledging the skilled worker shortage faced by SMEs, the budget includes nearly $90 million for 20,000 additional fee-free TAFE and VET places . This initiative is particularly focused on sectors like construction where the skilled shortages have been placing a strain on the sector. There is hope, while not an immediate fix, that this will reduce the impact the skilled worker shortage is having on our SME’s. 

5. Free Mental Health & Financial Support 

The past few years have been incredibly challenging for Australian small business owners. Acknowledging this, the budget is dedicating an additional $10.8 million to provide vital support aimed at enhancing both financial and mental well-being. Developed by Beyond Blue, the New Access Program is available to any business owner over the age of 18, offering six sessions with a coach who helps navigate through tough issues and manage stress. 

The government is extending the Small Business Debt Helpline—a national, free, and confidential phone-based counselling service that delivers crucial advice to small business owners grappling with their business finances. This dual approach ensures that the support covers both the emotional and practical aspects of running a small business. 

Disclaimer: This article is for general informational purposes only and does not replace professional advice or counsel. Neither Localsearch nor the author are liable for any misuse of information. Please speak to your business financial advisor for information specific to you.