Understanding what matters most to our business banking customers is key to how we support them – both through direct feedback and by staying across broader economic developments.
As part of this commitment, we recently launched our latest Business Banking survey. This is your opportunity to share what’s working, what could be improved, and what support matters most to your business. Your feedback plays a vital role in shaping the way we deliver our products and services – and we would love to hear from you. If you haven’t already, we encourage you to take a few minutes to participate.
As we continue to support businesses in achieving their goals, we also keep a close eye on external factors that impact their success. There is plenty to absorb with the tariff stance adopted in the US, which continues to create uncertainty for many businesses globally. However, it seems markets are now accustomed to the strategies being deployed as the US continues to negotiate tariffs with its trading partners. On the domestic front, markets are expecting a downward movement in interest rates at the RBA’s August meeting next week, with recent inflation updates suggesting that conditions are where they need to be for the RBA to make this move.
Federal Budget recap
As we are well into the start of FY26 and await the outcome of the RBA’s interest rate review next week, it’s a timely moment to revisit the Australian Government’s 2025-26 Federal Budget, handed down in March. The Budget introduced a range of targeted measures aimed at supporting and strengthening the business landscape – particularly for small businesses, construction, and First Nations enterprises.
With a focus on boosting productivity, supporting innovation, and reducing the cost of doing business while strengthening the broader economy, you may be interested in some of the following aspects of the Budget if you operate a business:
- Energy bill relief: Up to $150 in energy bill rebates for up to one million eligible small businesses, as part of a national package to ease cost pressures.
- Energy efficiency grants: $56.7 million in funding allocated to the Energy Efficiency Grants for Small and Medium Sized Enterprises program to help more than 2,400 businesses reduce energy use, with grants of up to $25,000 for upgrades like energy efficient appliances and improved heating systems.
- Digital capability support: Over $60 million committed to help SMEs adopt digital technologies, boost cybersecurity, and improve operations through the Digital Solutions program, Cyber Wardens program, Small Business Cyber Resilience Service and Cyber Health Check.
- Workforce development initiatives: Training incentives, apprenticeship subsidies, and skills programs aimed at addressing labour shortages in the construction sector.
- Improved payment processing times: 20-day payment terms for contractors and subcontractors on major government construction projects to improve cash flow and reduce late payments.
- Hospitality excise freeze: Pausing indexation on draught beer excise and excise-equivalent customs duty rates, and increasing support under the Excise remissions scheme and Wine Equalisation Tax Producer rebate (estimated to reduce receipts by $165 million over five years from 2024-25).
- Industry innovation support: $400 million Industry Growth Program to support small businesses with grants, expert advice, and help with commercialising innovative ideas.
- Regulatory reform and red tape reduction: $120 million committed through the National Productivity Fund to incentivise states and territories to cut red tape in the construction sector – supporting faster project approvals, improving uptake of modern construction methods, and reducing build times.
- Fair trading and small business protection: Stronger protection for small businesses and franchisees, backed by increased ACCC funding and tougher enforcement of the Food and Grocery Code of Conduct.
- Construction sector innovation: $54 million will be invested to accelerate the uptake of modern and innovative methods of construction.
- 'Buy Australian’ campaign: $20 million will be invested into the ‘Buy Australian’ campaign to promote locally made products and encourage consumers to support Australian producers.
Focus on First Nations enterprises and regional growth
I’m particularly pleased to see a greater focus on supporting First Nations-led businesses. The Budget allocated $3.4 million in funding to establish a place‑based business mentoring and coaching program for First Nations businesswomen and entrepreneurs, as well as $23.9 million to strengthen the Indigenous Procurement Policy to boost opportunities for First Nations businesses.
How P&N Bank can help
At P&N Bank, we are deeply committed to our business banking community. We understand the unique challenges and possibilities facing businesses today – and your Relationship Manager is here to provide you with the insights and support you need to help you make the most of the opportunities ahead.
Sincerely,
Jacqueline Ryan
Chief Business Banking Officer