The Federal Government’s 2022-23 Budget released recently 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:
8 key takeaways for Australia’s small business community.
- The federal government has pledged $2.8 billion to boost apprenticeship uptake and employee retention in the face of skills shortages. The Australian Apprenticeships Incentive System, launched mid last year, will provide wage subsidies to businesses which take on trainees in “priority” fields. This comes as good news for SMEs dreading the end of the (recently extended) Boosting Apprenticeships Commencements scheme, and the subsidies it provides.
- If you haven’t already, now is the time to invest in technology. Small businesses with annual turnover of less than $50 million will be able to access a new bonus 20 per cent tax deduction for the cost of expenses and depreciating assets that support digital uptake. The deduction will apply to any purchases made between 7.30pm on March 29, 2022 and June 30, 2023, up to a limit of $100,000 in expenditure per year. The deduction is available on external training courses to upskill employees in forward-looking fields like cloud computing, cyber security, and web design as well.
- The ‘patent box’ scheme will expand to cover developments in agriculture and low emission technologies. The scheme originally permitted income derived from Australian-born medical and biotech patents to be taxed at a concessional rate of 17%; applying the same tax rate to climate-focused tech is hoped to foster climate-focused innovation at home.
- The low and middle income tax offset (LMITO) will grow in the 2021-2022 income year. A new $420 cost of living boost will see the so-called “lamington” provide workers with $1,500 in tax relief at tax time. However, there are no signs the offset will continue past this financial year.
- Drivers, rejoice: the fuel excise on petrol and diesel will halve from March 30, from 44.2 cents per litre to 22.1 cents per litre. That halving will last six months – and the budget states the Australian Consumer and Competition Commission will make sure retailers pass the full discount to motorists.
- As expected, proposed improvements to small business cashflow, built around changes to Pay-As-You-Go tax calculations, are included in the federal budget. The federal government has proposed a reduction of the GDP “uplift” rate from 10% to 2%, a move it claims will improve the cashflow of around 2.3 million taxpaying businesses.
- 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.
- $56.2 million in funding will go towards programs assisting women take on positions in the technology and manufacturing industries. Extra programs mentioned in the budget aim to provide more women with entrepreneurial skills.
If you’re interested in seeking funding to help finance your business growth, Swoop’s team of experts can help you secure the ideal funding for your business. Simply sign-in or register an account for free, to get started.
Parts of this article are referenced from The Smart Company