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With the 2022 Budget recently released, there is plenty of news to unpack for businesses.

The Budget has implications on every corner of Australia's economy, and many updates are relevant for founders and startups seeking to build, grow and scale. 

KPMG has released a full Budget analysis, which unpacks the announcement and the key implications for various sectors. Short on time? Not to worry - we have you covered with three key updates that founders should be aware of from the October Budget.

$15 BILLION FOR THE National Reconstruction Fund (NRF)

While there were no changes to the R&D Tax Incentive or updates other innovation-related incentives, the Budget did include targeted programs that are consistent with Labor's 'Plan for a Better Future'. This included a commitment for $15 billion over seven years for the NRF, with targeted co-investments focused in seven priority areas:

  • Resources;
  • Agriculture, Forestry & Fisheries;
  • Transport;
  • Medical Science;
  • Renewables & Low Emission Technologies;
  • Defence;
  • and Enabling Capabilities.

What this means for founders: Some of the support from the Budget will be delivered via co-investments, including loans, guarantees and equity investment. This will alter the funding landscape and how projects are assessed. If you're wondering how to navigate the changing conditions, get in touch with us and see how we can help.


The Budget confirms that $197.7 million in funding will be redirected from the Entrepreneurs' Program over four years. The cuts include $96 million in "uncommitted funding" in 2024-5 and another $101.7 million in 2025-6.

In addition, the Labor Government will discontinue the Modern Manufacturing Initiative, resulting in another $303m in savings over three years. 

What this means for founders: Labor says this is "uncommitted funding" so it's difficult to say what the impact will be at this point. However, it's a good idea to build a network for expert advice and support. If you're not sure where to start, reach out to us and we can connect you with specialists in the KPMG team.


The government plans to amend thin capitalisation rules for income years commencing on or after 1 July. These changes include a replacement of the existing Safe Harbour test with a 30% earnings before interest, taxes, depreciation, and amortisation (EBITDA) test, as well as a new earnings-based group ratio to replace the worldwide gearing ratio.

The Budget also highlighted an increased scrutiny on individual taxpayers with the Personal Income Taxation Compliance Program. This includes funding to support corrective activities geared at overclaiming deductions or incorrect income reporting.

What this means for founders: Work with your CFO or outsourced finance team to review your debt funding structures in light of these changes, particularly to thin capitalisation rules. If you need support, get in touch.

Looking for more information on the Budget? Read the full KPMG Budget Analysis here.