The Federal Government’s 2023-24 Budget provides support aimed at helping small businesses go digital and invest in their employees.
Keep reading to find out more about what is in this year’s Budget for your small business:
1. Deductions for investments in business technology
Under the Technology Investment Boost and the Skills and Training Boost businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent deduction for expenditure on external training of employees by providers registered in Australia as well as business expenses and depreciating assets that support their digital operations.
The Tech Investment Boost is valid from 30 March 2022 until 30 June 2023, and the Skills and Training Boost is valid from 30 March 2022 until 30 June 2024.
2. Boosting apprenticeships and investing in training
The Budget extends the current wage subsidy programs around apprenticeships, including introducing a new streamlined Australian Apprenticeships Incentive System.
Small businesses will also be able to access a 20 per cent bonus deduction for eligible external training courses for upskilling their employees. This will mean eligible businesses will get an additional 20% tax deduction on expenses related to digital uptake and upskilling staff.
3. Cutting red tape and better regulation
Doing your taxes and navigating business administration is set to become easier. Australia’s PAYG system will be streamlined to enhance short-term cashflow for small businesses and support the prefill of some income tax returns and activity statements.
Support for small business employers to better navigate their workplace obligations is also on the way. The Government will establish a dedicated small business unit in the Fair Work Commission, and enhance and redesign the Payment Times Reporting Portal and Register.
4. Instant asset write-off extension
The Government’s instant asset write-off scheme’s eligibility criteria will be extended to encourage business investment.
The scheme has been extended until 30 June 2023, allowing businesses with annual turnover or total income less than $5 billion will be able to instantly write-off the cost of purchasing new capital items, helping businesses fund new purchases and investments in their growth.
5. Cost of living measures
In addition to the direct benefits for small businesses, the Budget provides indirect stimulus through a number of cost of living measures.
Roughly six million Australians will be eligible for a one-off payment of $250 to meet the rising cost of living pressures. Pensioners, carers, veterans, job seekers, self-funded retirees and concession card holders will be eligible for the payment which will appear in their bank accounts in April 2022. An additional one-off payment of $420 will be available for the 10 million taxpayers eligible for the Low and Middle Income Tax Offset.
The cost of fuel will also be cut with the Government slashing the fuel excise in half for the next six months.
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