The state’s peak business organisation, Business NSW, has welcomed the Federal Government’s budget measures that will help to ease the cost of doing business amid a turbulent economic environment.

The budget placed a clear focus on cost-of-living measures for Australians, but there is more to do to address the primary cost of doing business pressures.

A $20,000 instant asset write-off, energy bill relief and strong migration levels will give businesses some relief from the storm of high interest rates, rapid inflation and energy price rises. 

Treasurer Jim Chalmers has delivered a projected Budget surplus of $4.2 billion (0.2 per cent of GDP) for 2022-23, a sizeable revision from the deficit of $36.9 billion estimated in the last Budget.

The surprise budget surplus - primarily attributed to higher commodity prices and a strong labour market - will reduce the level of net debt from 22.3 per cent of GDP in 2021-22 to an estimated 21.6 per cent of GDP ($548.6 billion) in 2022-23.

Business NSW CEO Daniel Hunter said Dr Chalmers should be commended for delivering a budget surplus.

“This budget shows there has been a responsible approach taken to economic management to control spending and target relief for small businesses,” Mr Hunter said.

“While delivering the first surplus in 15 years is something to be commended, there will be much work required in the years ahead to control the deficit with gross debt forecast to hit $1 trillion ($1000 billion) by 2025-26.

Key measures announced impacting NSW businesses include:

• A new $20,000 instant asset write-off for small business allowing those with aggregated annual turnover of less than $10 million to immediately deduct eligible depreciating assets costing less than $20,000.
• Introducing practical measures to guard small businesses against cyber threats through a $23.4 million program to help them train in-house cyber wardens.
• Almost all of NSW’s 840,000-plus small and medium businesses could be eligible for up to $20,000 in tax relief under the Small Business Energy Incentive.
• One million small businesses nationwide will get power bill rebates through the jointly funded Energy Bill Relief Fund with NSW businesses to receive $650 in relief from July 1.
• $2 billion to support a new Hydrogen Head Start program that includes Wollongong in NSW.
• 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors.
• A new focus on rent relief and unlocking additional funding to build 1 million new affordable homes.
• $2 billion in initiatives to simplify the interface between businesses and government services.

“Businesses are in desperate need of a break and these measures will provide welcome support for business hit hard by costs pressures,” Mr Hunter said. 

“Business NSW welcomes the Energy Price Relief Plan, which will offer $650 for 1 million eligible small business to save on their energy bill,” Mr Hunter said.

“In the October Budget, the Federal Government announced that it would increase the 2022/23 permanent Migration Program planning level from 160,000 to 195,000,” Mr Hunter said.

“It has been revised down to 190,000 – which will still assist businesses being hit by an acute skills shortage.”

“The Government will provide additional funding of $54.3 million over five years from 2022–23 to introduce what it is calling a ‘new non-financial support model for Australian Apprenticeships from 1 July 2024’.

“Business NSW will work closely with government to ensure enterprises are still able to access the workers and skills they need.

“There is a cost-of-living crisis which is being addressed, but there is a cost-of-doing-business crisis that needs more attention over the coming 12 months.”