Over the previous yr, Australian companies have been by way of many ups and downs. From managing new COVID-19 variants and the related lockdowns and restrictions, to tragic pure disasters. Now, we’re seeing huge shifts as worldwide journey reopens and the economic system begins to bounce again. With small companies now dealing with new challenges too, like rising prices and expertise shortages, they might be seeking to this yr’s federal finances for help to navigate the yr forward.
So, what precisely do they need to see on this yr’s finances on Tuesday 29 March? We surveyed over 500 Australian small companies to search out out simply that. Right here’s what’s on the highest of their lists this time round.
Ongoing COVID-19 help
Whereas the economic system is exhibiting constructive indicators of restoration, many Australian small companies are nonetheless feeling the influence of years of lockdowns and different restrictions. 1 / 4 (25%) wish to see aid packages for industries nonetheless being impacted by COVID-19 within the finances and half (49%) of these surveyed see recovering from the impacts of the pandemic as a high precedence for this yr.
In the meantime, many say their largest concern (38%) isn’t with the ability to recuperate from these broad-reaching results in any respect. Others are additionally frightened about future COVID-19 associated challenges, with 1 / 4 (25%) involved a few lack of future help packages – for any new strains or outbreaks to come back.
Assist with digital instruments and processes
The overwhelming majority (70%) of these surveyed consider a finances that prioritises small enterprise digitisation is essential. Some even recognized establishing new digital methods as being a high precedence (16%) for this yr. This means there’s room to help extra small companies in seeing the advantages of digital instruments and processes.
Apparently, regardless of eager to see help for digitisation within the finances, 4 in 5 (79%) have considerations about, or don’t think about expertise essential in, the success of their enterprise. Contemplating previous Xero analysis discovered extremely digitalised small companies fared higher all through the pandemic, there’s alternative to assist extra get on board. So what is going to make a distinction? A 3rd of respondents (33%) consider a money rebate or grant to spend on expertise would assist them use extra digital instruments (like eInvoicing) of their enterprise.
Tax cuts, incentives and different direct monetary help
It’s no shock that small companies need assist with their backside line after the monetary challenges of the previous yr. 4 in 10 need this yr’s finances to give attention to tax cuts or incentives, whereas 1 / 4 (26%) would additionally wish to see wage subsidies. Specifically, when reflecting on previous budgets, company tax price discount (13%) and immediate asset write off extension (13%) have been two key finances measures that small companies say helped in earlier years.
These monetary breaks might go a great distance in supporting workers or enterprise development, in accordance with the survey. Almost a 3rd of small enterprise house owners (30%) say they’d like to extend wages if tax cuts have been launched once more, whereas 1 / 4 (27%) would be capable of enhance their companies/merchandise. An extra quarter (25%) would be capable of rent extra workers and 26 per cent would improve their tools.
Measures to assist rent and handle workers
Workers shortages have hit many Australian employers onerous over the previous yr. Two in 5 (40%) consider their enterprise has suffered from a expertise scarcity within the final 18 months whereas one in 5 have distinguished considerations round workers shortages (21%) and the price of wages (23%).
To assist handle this, small enterprise house owners need this yr’s finances to incorporate free or low price coaching to upskill and reskill for employees (25%) and incentives to rent workers (23%).
With the upcoming election this yr, small companies could also be trying extra intently on the federal finances and opposition reply for a sign of what’s to come back. They’ll even be turning to their advisors for assist decoding how each budgets might influence them. Many respondents (37%) use their accountant or bookkeeper’s experience to know what authorities insurance policies imply for his or her enterprise.
What do you need to see on this yr’s federal finances and opposition response? Tell us within the feedback what measures you suppose will assist what you are promoting as we navigate 2022.
