IMPACT OF THE FEDERAL BUDGET 24-25 ON VARIOUS SECTORS – EXPERT CONCLUSIONS

Small business

For small businesses across Australia, the 2024-25 Federal Budget offers a mix of relief and challenges. As CEO of Kwik Kopy Australia, a holistic approach is needed to understand what this means for SMEs in the print and design industry.

With the extension of the $20,000 instant asset write-off, it encourages investment in new equipment – ​​a necessary component for businesses to remain competitive. There are clear winners in this budget with the addition of a $325 energy bill credit that provides immediate financial relief. However, some may be left out in the absence of comprehensive tax reform. Independent business owners, as opposed to those who are part of a franchise network, face greater challenges with these challenges. Different business models can lead to disparities in support structures. Simplified access to government programs and training incentives is another critical aspect that requires attention as we enter the era of the AI ​​revolution.

Increased investment in technology and equipment could be the path forward, along with a stronger focus on regulatory compliance through additional funding for the ATO’s tax compliance program. On the other hand, managing energy costs is important. Energy relief provides immediate support, but long-term efficiency strategies will be needed to effectively manage costs, especially as rising costs and regulatory complexity hit SMEs and franchisees hard.

Additional support for digital marketing and technological improvements is essential for the print and design sector to remain competitive. We need targeted measures to address rising costs, increase workforce productivity and simplify access to training, creating a broader approach to addressing a wider range of challenges.

We need to support SMEs broadly and comprehensively. While the efforts being made are commendable, the Government should continue to pay attention to these issues to help SMEs navigate the current economic landscape. We see some positive steps taken in the Federal Budget, but it is also important to call for targeted measures to ensure that small businesses, particularly in the print and design industries, can stay afloat. With the right support, Australian businesses can continue to grow, transform and innovate.

96% of businesses in Australia are classified as small and medium-sized enterprises, the backbone of the Australian economy. According to the Australian Bureau of Statistics (ABS), 60% of small businesses in Australia are likely to fail within the first three years of operation, with 20% failing in the first year. In 2022-2023, we saw a 16% entry rate with 406,365 business start-ups and a 14% exit rate with 365,216 business closures.

By taking a balanced approach to current needs and long-term solutions, the Australian Government can help ensure SMEs thrive and survive in the years to come.

Author: Sonia Shwabsky, CEO, Kwik Kopy Australia

Housing and construction sector

For the housing and construction sector, the 2024-25 federal budget addresses some important needs, but it also presents both opportunities and challenges. As costs rise and competition for labor and materials intensifies, exacerbated by the cost-of-living crisis, it is becoming increasingly difficult for younger apprentices to complete programs. Available funding and initiatives may not be enough to significantly impact the skills shortage. Apprenticeship programs need to expand to more industries, and vocational pathways are a promising step in the right direction.

The government’s focus on free training in housing and construction is key, but it risks neglecting other sectors. Over 50% of all jobs require VET qualifications, underlining the need for a broader approach. Detailed data and information collection is essential to better understand the issues facing individual sectors.

We would also need to introduce more financial incentives. This is a key element in increasing apprenticeship completion rates. The planned payment of $319.50 from July 2025 is helpful but may not be enough. To ease the financial pressure, more support and additional payments would be needed to help apprentices complete their training more effectively.

While a $90 million investment in housing and construction education for 20,000 students is a good start, it may not completely solve the skills shortage. Every step counts in addressing the economic and debt burdens caused by the pandemic.

Author: Andrew Sezonov, CEO of WPC Group