Australia’s small business sector has welcomed new federal budget measures designed to alleviate the skills crisis, but a lack of direct cost-of-living support remains a concern for the hospitality sector.
Backdropped by surging and persistent inflation, Labor’s 2022-2023 federal budget, revealed Tuesday night, outlined measures the government hopes will aid small businesses without exacerbating the cost-of-living crunch.
The budget papers allocate $42.2 million to Labor’s pledge to accelerate the skilled visa processing system, a move designed to patch holes in the nation’s workforce.
The amount of income aged and veteran pensioners can earn before their pension payments are cut has also risen, a measure intended to encourage Australians with extensive industry experience back onto the job.
While unemployment is stable at just 3.5%, the Restaurant and Catering Industry Association of Australia (R&CA) welcomed budget measures focused on workforce shortages.
“With crippling staffing shortages and wages and costs spiralling out of control, the industry is in desperate need of bold and far-reaching policy reform to bring back the workers lost over the past two years,” R&CA CEO Belinda Clarke said.
But hospitality operators battered by rising prices need more targeted support, she added
“More needs to be done to support small businesses across Australia who are struggling with the increasing costs of doing business.”
Calls from hospitality providers to further subsidise diners’ bills or fees spent on third-party app platforms went unanswered in the budget, with the government saying its options were limited by the economic climate.
Speaking on Wednesday morning, Prime Minister Anthony Albanese said the government could not afford a budget filled with business support measures likely to intensify inflation.
“Had we had a cash splash, that would have just added to inflation and would have been counterproductive,” he said.
“So we made those difficult decisions in the national interest.”
While measures focused on small businesses were few and far between in the budget, industry representatives are broadly pleased by Labor’s approach.
The Council of Small Business Organisations Australia (COSBOA), a peak group representing smaller industry associations, gave the budget a ‘7/10’ rating.
The four-year, $4.7 billion boost to childcare subsidies was likely to support business-owning parents, particularly female entrepreneurs, COSBOA CEO Alexi Boyd said.
Further consultation is needed to ensure the plan also covers out-of-school-hours care, she added.
“Many small business owners, particularly women, rely on this service to ensure they can work in their business for a full day.
“Too often there is an expectation that the small business owner can do school drop-offs and pickups, taking hours of productivity away from their business.”
The group celebrated the $1.2 billion plan to expand NBN access in regional Australia, saying it could help small businesses across the nation better connect with the digital economy.
Industrial relations tweaks ushering small businesses into the enterprise bargaining system also gained sector support, along with the $15 million investment in small business mental health and debt counselling support.
“We warmly welcome the funding of these programs and know they will be vital to support our small business operators going through hard times,” Boyd said.
The Australian Small Business and Family Enterprise Ombudsman laid out those concerns in its own broadly positive budget rundown, suggesting more difficult circumstances await small business operators.
“Small and family business owners are literally exhausted,” ombudsman Bruce Billson said.
“They are struggling to make rosters work and keep doors open due to labour and skills shortages; grappling with supply troubles that means critical inputs, goods and services are not always available, on edge about cyber security fears and some are fighting floods and other natural disasters.”
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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