The federal budget is being met with concern from small business owners, with one Newcastle operator saying it does little to ease day-to-day pressures.  

The Happy Wombat’s Luke Tilse says while Treasurer Jim Chalmers’ fiscal plan includes new tax measures for workers and support for small businesses, it is unlikely to change financial conditions.

The budget comprised a $250 tax offset for eligible workers and a $1,000 instant tax deduction for work-related expenses, which the government says builds on previously legislated cuts.

For small businesses, it also makes the $20,000 instant asset write-off permanent.

It includes measures aimed at reducing delays and improving access to credit, too.

However, Mr Tilse said many small operators would struggle to benefit meaningfully from the incentives.

“Small business are still struggling,” he explained.

He added the asset write-off had limited impact for businesses without the cash flow to invest in major purchases.

“When you don’t have $25,000 to spend, you can’t write anything off with it,” he said.

Mr Tilse argued the budget did not deal with what he saw as broader issues in the economy, particularly rising costs in essential services.

“It doesn’t address the major structural problems we have at the moment,” he said.

He pointed to sectors such as banking, energy, insurance and healthcare, saying they take up a significant share of household incomes.

“Banks, food providers, energy companies, insurance companies and health care suck up 90% of people’s salaries,” Mr Tilse told the Newcastle Weekly.

“There is no competition in those sectors.”

Mr Tilse said this left households with less flexible income, which flowed directly into reduced spending in hospitality and retail.

“And, that is where it flows into the small business sector… where people don’t have enough money to spend on beer or getting a haircut,” he said.

Concerns were also raised about broader economic settings, with Mr Tilse saying concentration in key industries was putting pressure on everyday Australians.

“These companies vacuum money up, and that is the biggest problem we have in this economy,” he said.

The father-of-three stated the impact of cost-of-living was felt at home, too, noting his eldest son was supported through the National Disability Insurance Scheme (NDIS).

He said while the NDIS was important, there were ongoing debates about its long-term sustainability.

“I think a lot of people in the disability community will disagree with me, but I think there’s a lot of waste in that budget,” Mr Tilse said.

“I hope we don’t get our budget cut hard, however there’s a lot of people taking advantage of the NDIS system.”

Mr Tilse said, overall, the budget’s relief measures were modest.

“It’s a good thing, but it works out at about five dollars a week,” he said, referring to the $250 tax offset.

He said that, in his view, the budget did little to address the main drivers of financial pressure in the economy.

“That is not where the problems lie,” he said.

“The problems are high market concentration in all the sectors that dominate people’s paychecks.

“That is why so many feel poor at the moment.”

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