May 11 2023
The 2023–2024 Federal budget delivered good news for small businesses especially when it comes to ‘going green’ and adopting cyber security measures.
The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson says last night’s Budget helps SMEs tackle contemporary issues:
“There is support for small and family businesses to tackle immediate pressures, particularly with high energy input costs, an asset write-off boost to help re-equip and invest in productivity, tax administration changes that will help with vital cash flow challenges and much needed advice to deal with cyber security fears.”
The key deliverables for small business include:
Instant asset write-off: $20,000 instant asset write-off for small business allowing those with aggregated annual turnover of less than $10 million to immediately deduct eligible depreciating assets costing less than $20,000.
Cash flow support: Cash flow support for small business through a halving of the adjustment factor applied to Pay As You Go and GST installments. A 6% GDP adjustment factor will apply in the 2023-’24 year replacing the 12% factor.
Cyber security: Introducing practical measures to guard small businesses against cyber threats through a $23.4 million program to help them train in-house cyber wardens.
Small Business Energy Incentive: The Small Business Energy Incentive will help up to 3.8 million small‑ and medium‑sized businesses save energy and save on their energy bills.
The bonus tax deduction will provide businesses with annual turnover of less than $50 million an additional 20 per cent deduction on spending that supports electrification and more efficient use of energy.
Energy Bill Relief Fund: One million small businesses nationwide will get power bill rebates through the jointly funded Energy Bill Relief Fund. The Australian Government is providing $325 in bill relief to eligible small businesses in all jurisdictions. The total amount of bill relief will vary across the states and territories. Find out more.
Hydrogen Headstart program: $2 billion to support a new Hydrogen Head Start program.
Fee-free TAFE places: 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors.
Ease of doing business: $2 billion in initiatives to simplify the interface between businesses and government services.
There was no mention in this year’s budget about tax incentives for digital invoicing, but the good news is that you still have until the 30th June to to receive a $120 tax deduction for every $100 spent on ‘digital enabling items’ up to $100,000 per year.
When you fill out your 2022–23 tax return, you can claim the extra 20% bonus deduction on eligible items that you claimed on your 2021–22 tax return, as long as they were incurred between 7:30 p.m. on March 29 and the end of the financial year.
Read this year’s full Budget Speech
