What the budget means for indie agencies
Kathryn Williams, founder of KMint, looks at the Federal Budget and explains what it means for indie agencies.
First off let’s remember that indie agencies are mostly small businesses by most definitions. They’ve been hammered by inflation, increasing staffing costs and cautious budgeting from clients. So they’ll have been watching for signs that the government is putting decreasing inflation front and centre.
And overall, they’ll probably have been relatively heartened at what has been predicted, even if it’s meant some of the predicted bigger plans didn’t come to pass.
Looking at the announcements last night — and without having seen all the detail — there are a few things that stand out for indie agencies:
Small businesses
The headlines all went to the $300 household energy rebate, but there’s also a $325 rebate off power bills for around a million small businesses which is something.
The extension of the $20,000 Instant Asset Write Off is also a good thing for these agencies and will encourage more infrastructure investment as simple things like replacing computers and equipment which can often place a strain on a business.
Migration
The government announced a cap on new permanent migration, with net overseas migration expected to halve next year. For a sector reliant on a good flow of skilled migrants to fill many holes it could pose some challenges with staffing, and whilst the cap is down 5,000 on last year, I don’t think it will be a huge issue on the whole compared to the talent crunch we saw during the post-Covid years.
Parent Leave
News of a government top up for women taking statutory parental leave for their superannuation is also a good thing, given many of these smaller businesses won’t have the luxury of lavish private policies handed out by many companies in the industry.
HECS Debt Relief
While probably not one for most business owners, news that HECS Debt will be indexed to whichever is lower of the consumer price index (CPI) or wage price index (WPI) and backdating it will be celebrated at the junior and mid-levels of these agencies. With a university qualification almost a prerequisite for so many positions it will provide a little relief for some of the lower paid workers in the industry.
These timely announcements are a reminder to agencies to be rigorous whilst setting their 2024-25 financial budgets, eliminating unnecessary costs, and working with your financial advisors to focus on the other side of the coin – a compensation plan which reflects value.
Kathryn Williams is the founder of KMint. She brings over 20 years of experience in financial management, specialising in the creative and agency sector.
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In summary, nothing announced which will stimulate our industry via either small businesses (agencies) or big businesses (our clients).
Only inflationary measures which will inevitably prolong the economic slowdown choking our industry.
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I watch a lot of china news, india, US, UK. Inflation is a problem in all countries and all countries blame their own government for causing it. What’s the common theme here? It’s global inflation.
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