11th May, 2021
The government has produced a Budget that delivers investment in economic recovery and jobs growth — and that’s a win for businesses.
With the government focused on delivering positive outcomes for the Australian economy, this year’s Federal Budget takes us a step forward on the path to recovery.
Leading up to Budget, the Morrison Government announced a suite of measures to turbo charge Australia’s digitisation across all areas of the economy, under its Digital Economy Strategy, which it has confirmed in tonight’s Budget.
In his official announcement speech, Treasurer Josh Frydenberg told Australia that the country is “better placed than nearly any other country to meet the economic challenges that lie ahead”.
“Consumer sentiment is at its highest in 11 years,” Frydenberg said. “Business conditions reached record highs. And more Australians are in work than ever before.
“Our plan is working. Australia’s economic engine is roaring back to life. Since the last Budget, almost half a million jobs have been created.”
Following tonight’s Federal Budget announcements, MYOB says the extension of successful recovery measures announced in the 2020 Budget, including Temporary Full Expensing (an expanded version of the Instant Asset Write-Off), tax loss carry-back and the SME recovery loan scheme will be welcome news to SMEs.
“Our recent survey of 1000 SMEs found six in 10 owners and operators expect the economy to improve in the next 12 months. Key to this is that they are afforded the opportunity to recover effectively.
“Extending these vital measures will give SMEs the confidence to invest in themselves and in turn create jobs for Australians,” said MYOB chief employee experience officer Helen Lea.
MYOB calls out the following core themes as wins for small business:
From Canberra, Lea commends the government for its aim of achieving Australia’s status as a leading digital economy by 2030.
“The Digital Economy Strategy will drive substantial economic gains for Australia, with solid investment in areas we know will make a difference for the digitalisation of SMEs,” said Lea.
“We particularly applaud the investment in e-invoicing as a tool that will yield great productivity returns and shorter payment times for small business.”
While the focus of the Budget has been to assist the business community better face the challenges of the day, one particular challenge went unanswered.
As highlighted in MYOB’s recent report ‘Closing the digital gap: an incentive to SMEs’ the business management platform provides modelling that shows SMEs could be contributing an additional $10.5 billion to the economy with more targeted digitisation incentives.
Unfortunately, a specific tax incentive for acquiring digital tools remained absent from the day’s announcements.
“We have proposed to government that a tax incentive would help SMEs overcome barriers to adoption and allow them to concentrate on the benefits afforded by digitisation,” said Lea.
“With small businesses contributing 35 percent of Australia’s economy, we see this as an essential step to assist these businesses in entering the digital ecosystem.”
Want to hear more about what the 2021 Federal Budget means for small business?
See our expert panel featuring the The Hon. Stuart Robert MP, Minister for Employment, Workforce, Skills, Small and Family Business, Dr Craig Latham, Deputy, Small Business and Family Enterprise Ombudsman and Helen Lea, Chief Employee Experience Officer, MYOB, discuss what the Budget means for your small business (from Friday 21 May at 9:30am-10:15 AEST). View it here today.