SME owners keeping a keen eye on budget measures, MYOB finds

MYOB chief executive Paul Robson said the survey underscored that SME owners would weigh budget decisions strongly whilst navigating economic turbulence.

“SMEs are adaptable and forward-looking, but easing cost-of-living pressures is critical to lift consumer spending and support a sector that is significantly impacted by discretionary spending," he said. 

“The right settings can make a meaningful difference. The MYOB Bi-Annual Business Monitor points to a sector that is ready to move, be that to invest and grow or to consolidate, depending on what is delivered in the Federal Budget.”

Approximately a quarter (26 per cent) of SMEs said they would expand their operations if business-friendly measures were introduced in the budget, while 65 per cent said they would likely delay hiring and investment decisions if policymakers did not address key concerns.

MYOB found that SMEs were hoping for support to reduce cost-of-living pressures (53 per cent), lower company tax rates (36 per cent) and cutting red tape (35 per cent). Respondents named tax relief as the single measure that would make the largest difference.

The survey also found that businesses were grappling with cost pressures, with fuel (51 per cent), utilities (44 per cent) and interest rates (37 per cent) being the largest concerns. SMEs reported observing cost growth of approximately 18 per cent over the past 12 months.

A majority (67 per cent) of business owners expected economic conditions to soften further over the next year, causing many to recalibrate their strategies. Revenue and profitability were also down compared to previous years, with 19 per cent of SMEs reporting revenue growth over the past 12 months.

“These markers make this Budget all the more important, with SMEs operating in a softer revenue environment and limited profitability growth underscoring the need for measures that support confidence, investment and recovery,” Robson said.