Federal Budget 2025: Gather Bakehouse’s Lucy Long says small businesses ‘never likely’ going to be priority

A Perth small business owner says the lack of Federal Budget measures to support firms like hers came as no surprise because it was “never likely” going to be the priority in a cost-of-living crunch. Lucy Long, owner of Gather Bakehouse in Leederville, said she was not expecting “huge things” in Tuesday’s Budget. But she welcomed the extension of energy bill rebates delivered in a $1.8 billion package that would cut power bills for families and about one million small businesses by $150. The Federal Government also announced two new modest tax cuts and Ms Long hopes to get a slice of the pie. The Budget states a worker on the average wage of $79,000 will see their tax bill fall by an extra $268 from July 2026, and $536 a year from 2027. “Energy rebates, tax cuts . . . will make a difference and more money in people’s pockets will stimulate the economy, which will inevitably trickle down to us,” she said. “But I didn’t expect us to to be the focus and I’m not surprised that there were two or three things relevant to small business.” Since opening her business last February, Ms Long says she’s watched her operating costs such as wages and electricity grow incrementally. “You want to maintain your quality but when your expenses just continually go up . . . it does become really hard,” she said. “There’s only so much people will pay for a cup of coffee so we’re forced to absorb a higher percentage of those costs because I can’t charge people $12 for a flat white, that’s crazy.” Council of Small Business Organisations chief executive Luke Achterstraat said the Budget largely overlooked small business during the most challenging environment in living memory. “With decade-high insolvencies and crippling energy, rent and input costs, this Budget had the opportunity to provide a long-term roadmap for small business growth,” he said. “Unfortunately, the Budget largely recycles existing policies and fails to substantially deliver for the 2.5 million small businesses in Australia and the five million people they employ.” The Chamber of Commerce and Industry WA described the Government’s decision not to extend the instant asset write-off scheme as disappointing. It means the current threshold of $20,000 will drop to $1000. Ms Long would have liked to see more incentives for young people to start their own business. “We’re definitely losing that young business, entrepreneurship (mindset),” she said. “With so much uncertainty and the thought that costs are just going to keep going up . . . you can definitely see why that’s been impacted. “Increasing the proportion of young people starting their own business has a really positive influence on our economy, business growth and productivity.” Ms Long warned that without increased support from State and Federal Governments, more small businesses would go bust. “One in 10 cafes are forecast to close this year alone, which is insane, and 45 per cent of small businesses in Australia aren’t profitable,” she said. “It’s such a shame because small business is the (community) hub for culture and connection and character.”