JULIE COLLINS:
It’s great to be here today with Georgie from Beyond Blue at WOTSO and with Jason, the small business owner. Today, we’re talking about the extension in Tuesday night’s Budget, from last week, about the extension of NewAccess for Small Business Owners program. This is about mental health and counselling support for small business owners. This is an extension of a further 2 years. We’re talking about – with this program and indeed, with the Small Business Debt Hotline program – an additional $10 million over the Budget over that 2 years. This is the second extension we have given these important programs, because we understand that some small businesses are doing it tough. What we’ve done in the Budget is provide targeted support for small businesses. This is just one of the measures. Of course there’s the Energy Bill Relief and indeed, the Instant Asset Write‑Off of $20,000 for each asset for small businesses with a turnover of less than $10 million.
That will provide around $290 million in targeted cash flow support for small businesses because, as I’ve said, we know that some small businesses are doing it tough. All together in the Budget, we’ve got the Small Business Budget Statement, which shows over $640 million in targeted support for small businesses, knowing that some small businesses are doing it tough at this particular time. What we’ve tried to do in the Budget is get the balance right between providing targeted small business support and putting downward pressure and inflation and also making sure that we’re ready for the future jobs of tomorrow with investing in skills and investing in a Future Made in Australia. I’ll handover to Beyond Blue, Georgie, to talk about Beyond Blue NewAccess for Small Business Owners program.
GEORGIE HARMAN:
Thank you, Minister. We are absolutely thrilled that the government is recognising the importance of keeping our small business owners mentally healthy. So we’re delighted with a $7.7 million extension over the next couple of years for a program that works. A program that is designed for small business owners. It’s a really innovative model. You don’t need a diagnosis, you don’t need a referral from your doctor. You can just call a number or jump on our website, we will assess you for this program and then we’ll match you up with a coach – a mental health coach. Someone who absolutely understands the world that you live in and work in. They all have a small business background. Then we work with you in a highly evidence‑based treatment program over 6 sessions to actually make you understand what’s going and to give you the skills and coaching to reduce your distress. We know that small business owners that have completed this program have recovered clinically, they have recovered from symptoms of depression and anxiety. We know that 90 per cent of small business owners who have been in the program feel more productive. I was speaking to a small business owner who used the service just a few weeks ago, and they said, ‘this service saved my business. I was so overwhelmed. I was so stressed. I didn’t know what to do. I was in my own head, and I couldn’t see a way through it. This service saved my business, it probably saved my marriage.’ And I hate to think about what would have happened without NewAccess for Small Business Owners.
JASON:
Yeah, so I think this life support program is important for business owners. Considering that 70 per cent of business owners do suffer from some sort of mental health issue. Knowing that the government cares about this would be really important in assisting workplace mental health issues as well.
JOURNALIST:
Sorry, just before we lose you, we’ve got a question for you Jason. So obviously, circumstances are all the numbers point to that things are very difficult for small business at the moment. What are you experiencing in terms of that sort of mental health impact?
JASON:
So me being in business for 2 to 3 years now, I’ve sought help as well from a therapist, just to understand how my mind works and how to reframe my mind in certain stressful situations.
JOURNALIST:
Because you’re experiencing that in terms of the circumstances around your business right now?
JASON:
Yes. So, when I was starting out, I was dealing with a lot of stress and anxiety, and it was overwhelming. I was super overwhelmed. So, I did seek help and speak to other friends, and they encouraged me to seek help as well.
JOURNALIST:
Okay, thank you.
JOURNALIST:
Minister – well obviously, what you’re doing today is utterly timely in terms of numbers that we’re seeing. Let’s look at some of those – around 43 per cent of small and medium businesses, enterprises, are not making a profit. I mean, that’s extraordinary, isn’t it?
COLLINS:
Well, what we know is that small businesses are a huge part of our economy. Here in Australia, we have millions of small businesses that contribute over half a trillion dollars to our economy each and every year, and they employ millions of Australians. What we’re doing is we’re providing targeted support of over $640 million in last week’s Budget, whilst also putting downward pressure on inflation because, of course, the biggest issue that small businesses raise with us is labour shortages and, indeed, input costs going up through inflation. So, we’re also – of course, in the Budget – training more Australians. We want to make sure that we have Australians with the skills they need for the jobs of today and the jobs of the future, and that’s what we did in our Budget.
JOURNALIST:
Will it be enough to turn around this escalating failure rate, which I think we were saying is at around a 35 per cent right now, increase?
COLLINS:
Well, what we’re seeing with small businesses is insolvencies returning to some of the pre‑COVID levels. We are seeing a bit more in terms of the construction sector, because of some factors to do with constraints in that sector. What we want to do is provide targeted support to small businesses, which is what you saw in our Budget, but also put downward pressure on inflation, so that the Reserve Bank of Australia doesn’t have a tougher job. What we want to do is work to make sure that we put that downward pressure on inflation, but also support small businesses which is why we’re doing things like making sure that we provide cash flow support with the Instant Asset Write‑Off, which is why we’re providing direct Energy Bill Relief. We’re also doing important things to reduce red tape for small businesses, things like making sure that other businesses – big businesses – pay them on time with payment times reform, things like the reform of the franchise sector to make sure that franchisees and franchisors both have an ability to make a profit or to make a return on their investment. We are, and have outlawed already, unfair contract terms. We’re reducing a whole heap of nuisance tariffs. What we want to do is make it easier for small businesses to do business and provide them with that targeted support, by also putting downward pressure on inflation.
JOURNALIST:
On the issue of red tape. Regardless of what you’re saying that you’re doing, clearly the small business sector is unimpressed with red tape, a lot of red tape that’s there. For example, this idea of needing to label where seafood comes from on your menu – pizza shop, identifying where anchovy comes from. It’s a bit excessive, isn’t it?
COLLINS:
Well, this is about supporting Australian businesses and Australian seafood producers. This is about making sure that we support more things made here in Australia and more things produced here in Australia. What we want to do is see small businesses thrive in Australia. And that’s what you’ve seen from us. Plus, of course, you’ve seen from us in the Budget targeted measures to support small businesses. When I go out and talk to small businesses, and I’m meeting with them all the time, and I have discussions with small businesses, they are pleased with the supports that the federal government provides. What we’re also doing importantly, is working with state and territory governments bringing together the Ministers. When I first came into this role, the Small Business Ministers hadn’t met for more than 8 years. What we need to do is make sure we’re working together with state and territory governments and with other tiers of government to provide the support and to reduce the red tape that small businesses need reduced.
JOURNALIST:
Another one mentioned today is same day super payment. There is quite a list there. You’re not overburdening small business at a time when they can least actually deal with it?
COLLINS:
These measures have a big timeframe lead‑in because we have listened to small businesses. When we’re talking to small businesses, we’re working with them, and we are working to provide support for small businesses. I mean, when you look at things like, for instance, the amount of businesses that are improving their productivity and moving to technology – we’ve listened to them about cyber security. We have over $60 million now in investments to support small businesses as they move online, as they start to access different markets to make sure that they understand what information they need to keep, what information they should be keeping and for how long and to protect their business. We know that cyber security, for instance, costs a small business around $46,000 for each incident, so we want to provide practical support to support small businesses in a way that’s meaningful for them but, obviously, in a Budget context where we’re putting downward pressure on inflation.
JOURNALIST:
Let’s do jobs. Job advertisements – sharp fall last month. What can you say in terms of jobs in your sector?
COLLINS:
Well, we obviously understand that, you know, we were expecting unemployment to tick up a little bit. But of course, since we’ve now been in government, we’ve now created over 820,000 jobs, since we’ve been in government. 820,000 jobs have been created. That is a record for any government. What we’re doing is we’re working with small businesses, and with businesses more broadly, to make sure that we turn the economy around. When we came to office, inflation had a 6 in front of it, it now has a 3 in front of it. We’ve seen a Budget surplus last financial year, and we’re predicting a budget surplus of around $9 billion in this financial year. That will be 2 Budget surpluses in a row, again putting downward pressure on inflation, but importantly, saving taxpayers and businesses when it comes to repayments on debt. That is what we’re doing. We’re working in a methodical way to make sure that we turn the economy around and that we support businesses across the board.