Australian economy stories
Many smaller firms may delay hiring and investment unless the budget measures ease costs and restore confidence, MYOB says.
Uncertainty over planned capital gains tax changes could deter startup funding and prompt founders, investors and talent to leave Australia.
Innovation support may lift deep tech, but investors warn the Budget's CGT overhaul could curb startup risk-taking and talent hiring.
Critics warned the tax changes could deter long-term investment, while fresh funding for AI and digital ID was welcomed as a boost to productivity.
Business groups welcomed the Budget's productivity push, but warned small firms and agencies still lack the skills to deliver it.
Despite welcome AI funding, tech leaders say small firms still lack the cyber defences needed to adopt new tools safely.
Relief for the Reserve Bank comes as the federal budget avoids fresh cost-of-living handouts, while tightening tax breaks for higher earners.
Australian small firms are reporting higher revenue and hiring from AI, with regular use almost doubling in 18 months to 69%.
Rising fuel and energy bills are squeezing margins and leaving Australian firms facing weaker trading conditions ahead.
Survey data showing 35% of small firms hit by cyberattacks has prompted a free Optus scheme to help businesses prepare and respond.
Australian businesses renewing .au domains this May could land an Audi RS3 or GBP £100,000, as VentraIP widens discounts across hosting and email.
Many small businesses may delay investment and hiring unless the Federal Budget delivers tax relief and help with rising costs.
The spending will add 60 jobs in regional Victoria and bolster local supply chains as Mars expands Australian pet food production by 2027.
Higher fuel and borrowing costs are starting to squeeze builders, with insolvencies likely to rise if Strait of Hormuz disruptions persist.
Australian sole traders are using AI to cut admin time and boost output, with daily or weekly use now at 41 per cent, Hnry found.
Momentum stayed firm for Australian small businesses in the March quarter, as sales, jobs and wages all rose despite higher fuel costs.
Social platforms now account for 11% of online sales in Australia, with smaller firms driving a rapid shift to direct digital storefronts.
Yet most Australian mid-sized firms still lack the training and governance needed to turn AI use into broader revenue gains.
Fuel costs have pushed headline prices higher again, leaving the Reserve Bank of Australia under pressure to raise interest rates despite softer underlying inflation.
Easier consent and wider bank access could lift Consumer Data Right use to more than 18 million Australians by 2035, the modelling says.
.webp)
