certainty. While the government has assured that this substantial sum will be directed towards small businesses, the lack of clarity surrounding its handling has left many feeling skeptical about whether it will truly make a difference in helping them survive and flourish in the coming year. Julie Mathers, founder of Snuggle Hunny Kids, a children and baby products retailer, shared her thoughts in an interview with Inside Retail. “The budget is underwhelming from a small business perspective,” Mathers said. “Given that 5 million Aussies are employed by small businesses and they make up 98 per cent of all businesses, I’d expect more, especially considering the challenging last few years.” The instant asset write-off A significant disappointment in this year’s budget for small businesses is the decision not to extend the instant asset write-off into the 2025-26 financial year. This measure, which allowed immediate deductions for capital assets, has been crucial for small businesses investing in growth and innovation. Without it, many small business owners now lack the incentive to invest in essential equipment, technology, and infrastructure. Amber Hodgman, head of Medley Jewellery, told Inside Retail: “It would have been great to see more targeted support for small businesses in the budget. However, as always, savvy business owners will make the most of existing incentives by using the instant asset write-off before it’s reduced to $1000 at the end of this financial year.” A modest relief in an otherwise challenging budget is the introduction of income tax cuts aimed at providing some financial relief to Australians. While these cuts are likely to benefit employees, Mathers remains sceptical about their impact on small businesses.  “Any tax cut is always appreciated. However, interest rates are still high, so I think it helps to offset that more so,” she explained. “People might now be able to pay their rent and mortgages. It will incentivise some spending, but until we see more aggressive interest rate cuts, it may not be enough.” Beyond the immediate budget measures, small businesses are also grappling with broader economic challenges. In addition to rising costs and inflation, compliance with a complex regulatory environment remains a significant drain on resources. For many small businesses, navigating this regulatory maze is time-consuming and costly, with little government support to ease the burden. On a positive note, Hodgman highlighted the government’s ban on non-compete clauses in employment contracts as a potential advantage for small businesses like Medley Jewellery.  “We often work with creatives, freelancers and talent that have carved out their side business. Freely securing talent that has current and relevant experience from larger corporations in the same industry can help us disrupt and innovate, as well as create new small businesses with greater ease,” she said. What’s next The 2025 budget has left small businesses in a precarious position. With no permanent measures like the instant asset write-off and no new incentives to help businesses grow, many are left questioning how they will navigate the challenges ahead. Rising costs, regulatory complexity and a lack of direct government support have created an uncertain environment, leaving business owners wondering what’s next. Mathers cited the broader economy as a challenge, pointing to potential changes in social media platforms, like the possible decline of TikTok in the US, which many use as a strategic marketing tool. “It’s uncertain what will happen with that market,” she said. Globally, “costs continue to be high, with shipping, energy, and goods all rising. It’s difficult to pass these on to the customer, so we end up absorbing the costs and having to be extra efficient to accommodate the rises.” Hodgman shared similar concerns about the jewellery industry: “The jewellery industry, in particular, has faced significant price increases for key commodities like gold and silver. In many instances, we have to absorb the costs of these increased inputs and the subsequent loss of profit margin, compromising future investment and growth,” she said. “Planning well is key here, to better control cashflow and allow us to grow despite challenging conditions.” So, what’s next for small businesses? As small business owners face mounting pressures, their demand for meaningful government intervention has never been more urgent. Whether the government will take further steps to address these challenges remains to be seen, but for now, small businesses are left to navigate an increasingly uncertain landscape. In light of the uncertainty, Mathers remains focused on customers and community. “We thrive by having an amazing community and customer base who we surprise and delight on a daily basis,” she said. “We also focus heavily on running a very agile business and question every decision we make to ensure it’s right for our business. We keep a tight rein on costs, know our customers incredibly well, and we’re never ostriches!”