The Federal Budget just threw small business under the bus—here’s why it matters.

The FY2025 Federal Budget is devastating news for Australian small businesses.

Instead of fostering growth, the government has sacrificed business stability for short-term voter popularity.

This budget ignores productivity, innovation, and the harsh realities businesses are facing today.

Small businesses once contributed 40% to Australia’s GDP; now they’re down to just 33%.

Their share of employment fell dramatically from 53% to 42% a dangerous economic trend.

Almost half of all small businesses are now running at a loss.

Self-employed Australians typically earn less than the average full-time wage, which is completely unsustainable.

Yet, this budget has no real measures to relieve the mounting cost pressures businesses face.

Temporary energy bill assistance won’t offset years of spiralling inflation and rising operating costs.

The government’s reliance on immigration-led growth masks deeper productivity and wage-growth issues.

Real wages remain 4.8% below pre-pandemic levels, worsening the cost-of-living crisis.

Gross domestic debt soared from 15.2% to 57.9% of GDP, the highest growth among developed economies.

This reckless debt accumulation will inevitably lead to future tax hikes on average earners.

The tax system remains dysfunctional, generating 67% of revenue from individual, company, and resource taxes alone.

Without immediate reforms, innovation and productivity will continue to stagnate, severely harming economic prosperity.

The government’s neglect of small business innovation stifles the technological growth Australia desperately needs.

Compliance burdens remain excessive, strangling productivity and innovation potential.

Small businesses capture just 11% of the government’s $75 billion procurement spend, missing vital growth opportunities.

Outdated procurement rules and transaction fees drain another $1 billion annually from small business pockets.

Minor tweaks to procurement rules or card surcharges aren’t enough to reverse these deeply entrenched problems.

A fundamental policy shift prioritising small business growth, productivity, and innovation is urgently needed.

Australia’s economic future depends on thriving small businesses, not short-term vote-buying schemes.