3 out of 10 for Budget

Bill Lang, Executive Director of Small Business Australia, assessed the new budget's implications for small businesses. While welcoming the $325 electricity rebate and the extension of the instant asset write-off, Lang expressed significant concerns. He rated the budget a mere three out of ten, highlighting that it fails to address the deeper financial struggles of many small business owners.

Lang pointed out that around a million small business families are currently earning less than the previous year, with some businesses even losing money. Economic uncertainties, inflation, and interest rate concerns are exacerbating their financial insecurity. He criticised the budget's approach to inflation relief, suggesting that the measures might not effectively reduce the overall burden on small businesses.

Additionally, Lang emphasised the rising mental health issues among small business owners due to financial pressures. He called for practical solutions to enhance confidence and support for local businesses. Despite the introduction of a new online mental health tool in the budget, Lang believes more substantial measures are needed. Listener feedback echoed his sentiments, underscoring the limited impact of the rebate on substantial electricity costs and suggesting alternative ways to use the savings for community benefit.

Note: The following transcription has been produced by AI, please allow for incorrectly transcribed audio.

00:00

Talk about small businesses. Now, small businesses get an electricity rebate of $325, but what else is in the budget for you if you own and operate a small business? Bill Lang is the executive director of Small Business Australia. Good morning.

00:13

Yeah. Good morning. Sarah,

00:15

so what's your reaction to the budget?

00:18

Look, you know, on the surface, it was very well presented. But as you start digging through the 1000 pages and look at the devil in the detail, look at best we would give it sort of three out of 10 at small business Australia.

00:30

How much?

00:31

Yeah, three out of 10.

00:32

Three out of 10. Well, what about the $325 rebate? That's only worth the three is it?

00:38

Look, I think, to the extent that there are some things like helping businesses that are able to invest in additional assets to help their business, extending what's called the instant tax offset, that's a very that's a positive thing. Of course, we welcome any relief with respect to the electricity bills, and this applies to about a million small businesses. But important thing for everyone to note, Sarah is that about two and a half million small business families in the country, we have a million that continue to lose money and are earning less than what they were earning this time last year. So while the majority of the population has been able to get some, you know, increase in pay, particularly those that are on sort of, you know, salaries and working in, you know, good areas like the public service, up in Canberra, we've got a, you know, 1 million that are actually earning less, and in fact, in some cases, their businesses losing money. And so the 325 Thank you. Instant asset riders for those businesses that have got the cash flow to invest in some new equipment that helps. But yet, three out of 10 at best.

01:36

So being buffeted by the economic conditions the downturn, I suppose in spending, as people are finding life tough, is really affecting small business look

01:46

absolutely particularly in terms of people looking forward and what money will I have? What will happen with inflation? What will happen with interest rates, in particular, for those that borrow money, which many small businesses do, but it's not, you know, they talk about the headline rate of inflation. And there's some, effectively, a bit of cooking of the books going on here in terms of giving this money back, this splash of cash to help in electricity bills. People aren't going to receive that directly. It's going to be coming off their electricity bills. So the electricity companies get it, yeah, and it adjusts the formula to some degree. Look what really matters with all of this is going to be, is actual inflation, is what I'm paying well,

02:19

that should reduce the inflationary impact, though, rather than just hand out the $300

02:23

that, look the theory, this is the theory that they're working on, and they're talking about the headline rate, and it'd be great to hear what the head of the Reserve Bank has got to say in terms of what you know the verdict of the Reserve Bank is.

02:36

I'll give Michelle a call after we hang up. Um, excellent. Now, what I find interesting, Bill Lang, Executive Director of small business Australia, raised the need for mental health funding, and the impact that has on small business explain

02:50

the fundamental thing with business owners and the extent to which mental health is being driven is rising with them. You've got a million earning less money. So it's about financial security. And the real question becomes, well, what can impact the financial security of these small businesses? What are the root causes? And it seems like in certain industries, excessive corporate power and excessive profits, you know, the application of big business regulations and compliance and more laws to two and a half million small business it's okay for the big guys that have got plenty of staff earning salaries, dealing with all of that stuff. You know, we've had this thing called the they called it closing the loopholes for many small business owners that we deal with. So it's a bit more like tightening the noose with respect to what we're now going to deal with. And what we really need is a practical plan that builds confidence amongst all Australians in terms of getting out and supporting local businesses to many respects. Sarah, you could describe this budget as a spend more, borrow more and pray more, in terms of the bet that's being made around whether actual inflation comes down

03:49

by so this is having an impact, you're saying, on the mental health of people who own a small business. You know,

03:54

I'm sure you'll get plenty of calls from small business owners that have got the time that if your financial security is being impacted, as it is, with a million small business families that is having a direct impact depending on your financial resources, on your emotional and mental and physical health, yeah, well,

04:09

there is a new online tool for those who need mental health help that has been announced in the budget. So that's one thing that has been announced, but it is a growing area of need I appreciate with the stresses that people are under. Thanks for your time this morning.

04:25

Thank you. Sarah,

04:26

there's Bill Lang, Executive Director of small business Australia, I'm a small business owner. Says one of my messages on the text line, my electricity bills are 24,000 per year, so 325 is not going to help much. Jo says, if you're whining about the $300 power rebate, then donate it to a food bank or a refuge, then you can feel good about yourself and help the needy. So yeah, it'll come off your power bill, and that money you save, you could give away absolutely