Your browser version is no longer supported, so you may experience issues while using this site.
Please upgrade to a current browser to enjoy the best experience.

Solid economic outlook for starting a small business

By  Stephen Sealey

Australians considering a move into business ownership need all the support they can get, starting with a buoyant economy and a good chance of finding enough work.

Many also need help to raise the necessary capital to get their innovative or disruptive business idea off the ground.

The 2017 Federal Budget unveiled tonight contains sufficient good news on both key fronts to ensure starting a business will continue to appeal to the budding entrepreneurs among us.

It forecasts a rebound in Australia’s national economic growth to 2.75 per cent in 2017-18 and then 3 per cent in 2018-19, led by strong household spending and non-mining activity.

A massive program of billions of dollars in infrastructure spending on the nation’s roads, rail and runways is aimed at creating jobs and making it easier to do business.

The Government will also provide more than $470 million over four years from 2017-18 to establish the Regional Growth Fund – supporting long-term economic growth and creating jobs in key regions.

When it comes to raising capital, Treasurer Scott Morrison said the Government was extending crowd-sourced equity funding to proprietary companies, opening this avenue to a wider range of businesses.

Another change announced relaxes the ‘same business test’ and introduces a ‘similar business test’ for companies wanting to access losses made in previous financial years.

This means companies could access these past tax losses even if they have entered into new business or transaction types.

Indigenous businesses and entrepreneurs also received a mention in the Budget with funding made available for new innovative and effective support mechanisms.

Services will include workshops, business planning and training. The measure will also provide tailored loan products, including capital assistance for Indigenous entrepreneurs who would like to establish or grow their businesses.