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Unlocking Opportunities: The Impact Of The Federal Budget 2024 On Small Businesses

The Government released the Federal Budget 2024-25 as of the 14th of May. The new Budget introduces many initiatives that could benefit Australian small businesses and SMEs. Alongside these new legislations, some current initiatives continue to bring value for small business owners.

In this blog, let’s dive into the details of the Federal Budget 2024 and the implications it will have on small businesses.

Tax Cuts And Instant Asset Write-Off

The good news is that 13.6 million Australian taxpayers can benefit from an average tax cut of $36 per week.

This initiative will take effect from 1st July 2024. It is one of the Government’s efforts in reducing individuals’ financial stress in the current economic climate. 

Most importantly, one of the key initiatives for small businesses is the extension of the Instant Asset Write-Off for eligible businesses for another year.

So, small businesses with an annual turnover of less than $10 million can deduct the full cost of new assets costing less than $20,000 until June 30, 2025. 

This Instant Asset Write-Off applies per asset, helping SMEs with their cash flow and purchasing tax-deductible assets.

The Government invests $290 million in this tax incentive and estimates that 4 million small businesses will gain benefits.

Energy Bill Relief

Eligible small business electricity customers can reduce expenses on their energy bills with this energy rebate.

They will receive $325 to pay their electricity bills in quarterly installments throughout the year.

However, the definition of an electricity “small customer” depends on each state and territory.

It is typically determined by the electricity consumption threshold every year. The lowest threshold is 40 MWh in Victoria. And the highest is 160 MWh in South Australia and the Northern Territory. 

Small businesses with annual electricity consumption above the threshold will not be eligible for this energy rebate.

Therefore, it is important to check your business eligibility for your state and territory rebate schemes of this Energy Bill Relief Fund.

Mental Health And Financial Wellbeing Support

The NewAccess for Small Business Owners developed by Beyond Blue has been providing valuable help for small business owners.

Thanks to the extension according to the Federal Budget 2024, SMEs could continue seeking help from a mental health coach.

All mental health coaches in this program are specially trained and have small business background.

As a result, they can help SMEs by providing practical problem-solving approaches and stress management advice. 

By taking part in this program, small business owners can take care of their mental health and adopt practical tactics in navigating different challenges in business.

Moreover, the Small Business Debt Helpline is also available.

It is a free service with a team of qualified financial counselors. They can listen and provide support on different topics such as disaster relief, government grants, overcoming financial difficulties.

To extend these initiatives, the Government allocates $10.8 million so that the right support is available to those who need it most when running a business.

Cyber Security

With more businesses shifting online, cyber security has been one of the main priorities. Thus, the following programs receive a considerable amount of funds.  

  • Free online training courses for small business owners and staff are provided by the Cyber Wardens. This program receives $23.4 million in funding. 
  • The Small Business Cyber Resilience Service receives $11.1 million. This service can help small businesses improve their cyber resilience and receive support when a cyber incident happens.
  • The Government also funds $7.2 million for the Cyber Health Check online interactive tool. This tool aims to help SMEs self-assess the strength of their cybersecurity system. 

Small businesses can take advantage of these programs to avoid online risks, improve security, and seize the right opportunities in the digital space.

Payment Times Reporting

With a further $25.3 million invested in the Payment Times Reporting Regulator, small businesses can potentially improve their efficiency with payments.

Under the scheme, small businesses could have better transparency into the details of their payments made to larger businesses and government enterprises.



eInvoicing adoption gets extra support with a $23.3 million fund.

This technology can help businesses avoid payment redirection scams, improve cash flow, and boost efficiency.

The advantages of eInvoicing also include enhanced accuracy and reducing resources in processing payments. 

This typically means no more lost invoices, improved security, faster payments, and better business decisions thanks to up-to-date financial information.

Digital ID

The Digital ID system is expanded thanks to a $288.1 million investment.

This technology will potentially eliminate the repetitive administrative tasks for small businesses by reducing the amount of customers and employees’ ID data.

The benefits include reducing the administrative costs and resources, providing better storage and protection for all the important documents of small businesses.


Paid Parental Leave

Small business owners who implement Paid Parental Leave can get extra support with a total fund of $10 million provided.

This could allow small businesses to continue to provide leave for their employees who also manage parenthood responsibilities.

Fair Work Ombudsman

The Government allocates $20.5 million to the Fair Work Ombudsman to help small businesses comply with workplace laws. 

This organisation also provides essential support for employers and employees to ensure productive, compliant, and harmonious workplace relations.

Productivity, Education, and Training

Small business owners and workers’ representatives can roll out practical activities and initiatives to support cooperation in the workplace.

This is possible through a $60 million added to The Productivity, Education, and Training Fund.

Industry Growth Program

The Industry Growth Program receives $329.4 million to help eligible businesses commercialise their ideas and grow.

The goal is to support startups and SMEs within priority areas of the Australian Government’s National Reconstruction Fund.

Small businesses with innovative ideas can connect with a Program Adviser to explore new opportunities in the industry.

Upon completing the mentoring phase, you may choose to apply for grants based on the stage of your projects.

For The Construction Industry

Over three years from 2025-26, small and medium businesses can get access to Group Training Organisation services with reimbursement from the Government. 

This could allow up to 800 small and medium businesses to benefit from clean energy, manufacturing, and construction apprentices. A $1.8 million fund has been invested to support this initiative.


With the Federal Budget 2024 in place, many small businesses can benefit from the initiatives that will bring value in terms of cash flow, productivity, security, and growth.

Make sure you understand the implications of the Federal Budget 2024 for small businesses and your eligibility for these incentives and programs.

If you have a small business with an annual turnover of less than $10 million, you can take advantage of the $20,000 Instant Asset Write-Off to purchase tax-deductible assets before EOFY. 

If you need extra funds for this tax incentive, consider applying for the Lumi Business Line Of Credit.

It’s the ultimate money-on-demand finance solution for your business’s EOFY purchase needs. The best part? It provides full flexibility at zero risk, meaning you can spend as much or as little as needed and only pay for what you actually use. No additional or ongoing fees. 

If you’re ready to apply for a Business Line Of Credit, click here

Got more questions? Get in touch with our friendly team via phone at 1300 005 864 or email sales@lumi.com.au. 

Disclaimer: We try our best to fact-check all information and keep it up-to-date, but this can not always be guaranteed. All of the information shared is for general use only and should not be considered personalised financial advice. Make sure to consult an accredited accountant and/or tax agent for personalised advice on matters related to your business’s or personal finance. 

Post Author: Sally Le

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