Federal Budget 2023/24: 5 Ways Australian Businesses Can Benefit

Federal Budget 2023/24: 5 Ways Australian Businesses Can Benefit
May’s Federal Budget has been released and we’ve summarised some of the key points you should know as a business owner.
by Square May 10, 2023 — 1 min read
Federal Budget 2023/24: 5 Ways Australian Businesses Can Benefit

This article is only for educational purposes and does not constitute legal, financial or tax advice. Make sure you consult a professional regarding your unique business needs.

May’s Federal Budget has been released against a backdrop of economic uncertainty and emerging opportunities to build a more resilient economy. There is a lot of information available and it can be confusing for business owners to decipher which incentives will benefit them in the financial year to come. We’ve summarised some of the key points you should know below.

1. $20,000 instant asset write-off

It was previously thought that the instant asset write-off incentive would come to an end in 2023. But the federal government has announced a refresh to the scheme for an additional 12 months where 3.8 million businesses are expected to benefit from the incentive. Small businesses with an annual turnover under $10 million will be free to deduct the full cost of business upgrades and resources (including business hardware and software) costing less than $20,000, so long as those purchases are installed and ready for use between July 1, 2023, and June 30, 2024.

2. Energy price relief

Businesses with a turnover of up to $50 million are eligible for a one-off payment of $650 off their power bills and a 20% deduction to electrify cooling and heating systems, install new batteries and heat pumps, and replace ageing tools.

3. Cash flow boost for businesses

The government is providing cash flow relief for approximately 6.1 million businesses by halving the increase in their quarterly tax instalments for GST and income tax for the 23/24 financial year. This means that instalments will only increase 6% instead of 12%.

4. Investment in cyber security: Cyber Wardens Program

$23.4 million will be invested in a program to equip small businesses with the foundational skills they need to improve cyber safety. This program will be delivered by the Council of Small Business Organisations Australia and will support more than 15,000 small businesses.

5. Industry growth program

$392 million has been assigned to launch the Industry Growth Program, an initiative to help small businesses and start-ups commercialise their concepts and expand their operations, with a focus on priority areas listed in the National Reconstruction Fund.

You can learn more about all of the incentives announced in the 2023/24 federal budget here.

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