SMEs seek cost reduction & support in upcoming budget

Recent data from MYOB reveals what small and medium enterprises (SMEs) expect from the upcoming budget announcement. The latest MYOB Bi-Annual Business Monitor: Budget Edition collated responses from over 1000 SMEs and, for the first time, 500 mid-market businesses.

The top measures the survey responses suggest SMEs would like to see in the budget include support to reduce the cost of living (52%) and cutting of red tape/removal of bureaucratic processes (33%). On the other hand, mid-market businesses would prefer to see a lowering of the company tax rate (37%) and new rebates and grants for energy usage (23%).

For both these business cohorts, the most significant pressures relate to business costs such as fuel prices (49% of mid-market and 41% of SME respondents), the cost of utilities (43% of mid-market and 38% of SME respondents), and interest rates (43% of mid-market and 30% of SMEs).

Emma Fawcett, General Manager of MYOB, SME, explained that the research provides detailed insight into the performance and expectations of the Australian business community. Fawcett noted, "The cost of living is impacting small businesses harder than ever, with less money moving around the economy. Businesses are being squeezed on two fronts: the cost of doing business is going up, and their customers are spending less."

Fawcett also revealed smaller businesses appeared more cautious, with only 28% anticipating an improvement in the economy in the year ahead, compared to 63% of mid-market respondents. Despite these concerns, Fawcett praised the resilience of the SME community, highlighting that they are "always looking for new strategies to help their businesses thrive."

As the upcoming budget announcement approaches, businesses expect to see measures that will address the ongoing cost of living crisis. Fawcett added, "We encourage the Government to deliver for SMEs and the mid-market in this Federal Budget. Cost of living support, and fuel and utility incentives, will help businesses during the winter, while reducing red tape and offering further opportunities for all businesses to adopt digital technologies will help drive productivity to aid recovery and scale."

Undoubtedly, SMEs and the mid-market play a crucial role in building a robust national economy, contributing over half of Australia's gross domestic product (GDP). Fawcett affirmed, "Ensuring these businesses are in the best position to navigate the current climate and strive for growth in the coming years is vital to a healthy trajectory for the national economy."

As the Federal Budget announcement looms, the expectations of SMEs and mid-market businesses underscore the urgent need for government intervention to alleviate financial pressures and foster economic resilience. MYOB's comprehensive survey highlights the critical areas where support is most needed, from reducing the cost of living and bureaucratic hurdles to providing tax relief and energy incentives.

Addressing these concerns will help businesses navigate the current economic challenges and bolster their capacity for future growth. With SMEs and mid-market businesses contributing significantly to Australia's GDP, their stability and success are paramount for the nation's economic health. Emma Fawcett's call to action for the Government to deliver meaningful support in the upcoming budget resonates with the broader business community's hopes for a sustainable and prosperous economic environment.