TACC news

Federal Government delivers new support for SMEs

4 July 2024

As the new financial year begins, the Federal Government is rolling out additional support measures for Australia's small businesses. These initiatives aim to alleviate financial pressures, streamline operations, and boost productivity across the small business sector.

Key Support Measures

1. Energy Bill Relief: From 1 July  2024, approximately one million small businesses will receive $325 in energy bill relief.
2. Extended Instant Asset Write-Off: The government is providing $290 million in cash flow support by extending the $20,000 instant asset write-off until 30 June 2025. This applies to small businesses with an annual turnover of less than $10 million.
3. Tariff Abolition: 457 nuisance tariffs will be abolished from 1 July 2024, to reduce red tape and compliance costs.
4. Increased Government Procurement Targets: New targets have been set for Commonwealth procurements from small and medium enterprises (SMEs):
   • 25 per cent for procurements below $1 billion
   • 40 per cent for procurements below $20 million.
5. Simplified Procurement Process: The SME exemption threshold for Commonwealth procurements has been raised to $500,000.

Mental Health and Financial Wellbeing Support

The government has allocated $640 million for practical and targeted support, including:

• $3.1 million over two years from 2024-25 to extend the Small Business Debt Helpline
• $7.7 million over two years from 2024-25 to continue the NewAccess for Small Business Owners program, offering free and specialised mental health support.

Impact on Small Businesses

Small businesses are crucial to Australia's economy, employing over five million people and contributing more than $500 billion annually. The government's measures aim to help these businesses overcome challenges and improve their long-term resilience.

Minister for Small Business, Julie Collins MP, stated: "The Albanese Labor Government is backing Australia's small businesses to succeed with the recent Budget outlining more than $640 million in targeted support in the Small Business Statement. The new financial year kickstarts new support for small businesses because our Government understands the critical contribution they make across the country. Labour is the party of small business and we'll keep delivering so Australia's small businesses succeed."

These initiatives demonstrate the government's commitment to supporting and strengthening Australia's small business sector as a vital component of the national economy.