The Franchise Council of Australia (FCA) welcomes a number of measures in the 2023 Federal Budget but says “more can be done” for small businesses.
Matthew Monaghan, CEO of the FCA, said they welcome the measures introduced by the Albanese Government to support the small business community, including the Energy Price Relief Plan, continuation of the Instant Asset Write-off and the introduction of the Small Business Energy Incentive.
However, Monaghan said that more could be done to help supercharge the main engine of the Australian economy – small businesses.
“It is disappointing to see that the Federal Government has revised down the 2022/23 permanent Migration Program planning level from 195,000 to 190,000, given acute workforce shortages across many industries. However, the allocation of 137,100 places to the ‘Skills’ migration stream is welcome.”
Currently, 98 per cent of businesses in Australia are small and medium sized enterprises and franchising is the predominant business model in the sector.
“As identified in the most recent ‘Pulse Check’ survey from FRANdata, franchised small businesses are grappling with rising business costs and turbulent economic headwinds, but the most critical issue is workforce shortages,” said Monaghan.
The announcements relating to domestic skills development are positive, said Monaghan, including the prospect of $3.7 billion in additional funding for vocational education and training.
“The economic picture outlined in the Budget highlights an array of risks. Regulatory overreach by government represents a real threat to the confidence and continued operation of small businesses across Australia.”
Monaghan said the FCA look forward to working with the Government on building on this Budget and addressing the challenges faced by franchised small businesses across the country.