Small business is the lifeblood of our community and strengthen our thriving economy. This year Small Business Day falls on Saturday 29 October 2022.
The aim of Small Business Day is to celebrate and recognise the contribution that small businesses make to WA. It is a 'Think Small First' initiative to raise awareness about small business in Western Australia. Small Business Day doesn’t belong to one specific organisation but rather is a movement.
Small Business Day is an opportunity for us to remember the importance of this group and the contribution they make to our economy, and for us to continue to support such a vital part of our community by shopping locally. Small businesses operate across a diverse range of industries. In the Bunbury Geographe region, there are an amazing range of business, products and services that these passionate individuals work incredibly hard to deliver to the community.
Small Business Day presents an opportunity for all of us to support the people behind the business – Shop local. #Makeasmallpledge in the coming months to purchase your Christmas gifts through local retailers. Over the festive season explore the local area; with such a wide range of tourism and hospitality offerings here in the South West, your adventure will be helping support many local businesses.
The Federal Budget was released on Tuesday 25 October 2022. I have been able to review a few different reports and highlights from Deloitte’s report and commentary from Regional Development Australia – Charles Jenkinson and CCIWA Economist Aaron Morey which I have summarised below.
Overall the net effect of higher than expected revenue despite increased expenses leaves a healthier bottom line in the next two years. The underlying cash deficit is forecast to be $36.9 billion in 2022/23 – 41.1 billion better than forecast in the Federal Budget March 2022. The deficit is also expected to be lower in 2023/24. After that things get more challenging, and the Governments fiscal position worsens with underlying cash deficits now almost $11 billion larger across 2024-25 and 2025-26. Risks to the outlook are rising based on the performance of the Global economy.
NDIS is expected to cost $52 billion, defence spending is rising to $44 billion, interest repayments are expected to rise to $33 billion a year. GDP growth next year has been revised down to 1.5% from 2.5% - reductions in household consumption and business investment are contributing factors. The government is resisting the urge to further compensate households for the cost-of-living pressures despite an expectation that the cost of energy will increase by 50%.
There are measures to develop closer ties with pacific nations amidst geopolitical concerns and supply chain resilience.
According to Aaron Morey chief economist for CCIWA, there are some worthy initiatives around parental leave and childcare but not enough to drive the economic growth needed to address our fiscal challenges. He believes that if we don’t address reforms needed in taxation and industrial relations the problems outlined in the budget will only grow.
Government has provided clarity regarding the many tax related, announced but unenacted measures, and announced a range of additional funding for the ATO and the Tax Practitioners Board.
Despite extensive media speculation, the Government has not reversed the Stage 3 tax cuts scheduled to commence on 1 July 2024 for taxpayers earning in excess of $45,000.
On a regional standpoint, RDA – Charles Jenkinson highlights that this budget includes a commitment to $1bn of investment over three years in community programs to improve regional liveability.
The Federal Budget also provided more details of a new approach to regional infrastructure grants which aims to restore accountability, transparency and fairness to the Commonwealth’s investment in regional programs.
Specific areas of interest are covered in the detailed attachment that RDA – Charles Jenkins provided – see full document here.
For more information about the 2022-23 Budget, go to https://budget.gov.au. This website outlines: the Budget Papers, Women’s Budget Statement, Treasurer’s speech and Ministerial media releases.
The Regional Ministerial Budget Statement 2022-23: Investing in our Regions with Purpose and Integrity, was also released. To read the full statement, go to https://minister.infrastructure.gov.au/c-king/media-release/honouring-our-commitments-regional-australia
