WA budget misses mark for SME relief, BDO says

The WA state budget delivered last Thursday has failed to address critical needs for small businesses with no inclusion of changes to payroll tax, no new relief measures for SMEs and the scrapping of the $400 electricity rebate.

Phil Renshaw, indirect tax director at BDO, said the WA budget missed key opportunities to ease cost-of-living and operating pressures on small businesses.

“This is a high-spending budget that still retains a significant surplus but there’s very little in it for small business,” Renshaw said.

“It’s good to put money away for a rainy day, but for WA, that rainy day is still a while away, so it would have been good to help small businesses who are desperate for assistance now.”

Despite there being no additional help or relief for small businesses, the budget invested heavily in healthcare, affordable housing and training students.

The Cook Labour government announced that it would continue its “record investment” in TAFE and training to provide students with the skills they need in the current workforce, with $331 million allocated in the 2025–26 budget.

Roger Cook, WA Premier, said this budget reflected the government’s support for fee-free TAFE and “securing a future that’s Made in WA”.

“Building a skilled workforce helps keep our economy the strongest in the nation, powers our transformation to renewable energy and delivers on our commitment to make more things in Western Australia,” he said.

“That's why my government is building WA's construction workforce, training our clean energy workforce, and providing the funding to make sure our students are trained with the best and most appropriate equipment.”

The budget heavily focused on skills training, and Renshaw noted TAFE funding to be welcome, but the lack of attention and immediate relief for small businesses was alarming.

Renshaw said benefits in investment in infrastructure, training and housing, specifically in apprenticeships and high-value engineering, were welcome but would be effective on a longer-term scale, rather than short term.

It was also noted by the WA government that there would be an increased focus on the extension of the GTO Wage Subsidy Program, which would assist SMEs in getting more apprentices and trainees “on the job”, however, this would only apply to specific small businesses.

In addition, the extension of the First Home Owner Duty Rebate to 5,500 more applicants and increased fuel subsidies for remote patients would help offer targeted support to individuals and regional communities, Renshaw noted.

“There’s a strong investment in areas like battery development and manufacturing capability, and that’s good to see. But there’s not a lot of detail, and not much that immediately helps the small businesses already under pressure.”

“This budget puts WA on a path for growth, but small businesses need more than just a nod to training. Direct relief would have gone a long way.”