Following Treasurer Josh Frydenberg’s delivery of the federal budget for 2022-23, the Government is focussed on its commitment to continue to support small businesses describing them as being “at the heart” of the Australian economy with Australian’s small businesses employing around 7.8 million workers.
“The government has backed small businesses with the lowest tax rates in 50 years and record investment incentives. Tonight we go further, rewarding small businesses that invest in skills and new technology,” he said.
The Australian government is continuing focus on streamlining business interactions, reducing compliance costs, streamlining reporting requirements and improving cash flow for small and medium businesses.
- Once fully implemented, the government’s Deregulation Agenda is focused on making it easier to grow and run their businesses. It is expected to generate deregulation benefits in excess of $21.0 billion over 10 years.
- Lower taxes for small businesses will allow for extra cash flow to employ another worker, offer extra shifts to current employees or to purchase required equipment. The Government will deliver more than $21 billion in tax cuts to small businesses from 2015-16 to 2024-25 with around $2.6 billion in 2022-23. The company tax rate for small businesses has been reduced from 30% in 2013-14 to 25% from 2021-22.
- A $1.0 billion Technology Investment Boost will be provided to encourage small businesses to go digital. Businesses with annual turnover of less than $50 million will be able to deduct a bonus 20% of expenses and depreciating assets that support digital uptake. The boost applies to expenditure up to $100,000 a year from 29 March 2022 until 30 June 2023.
- The Skills and Training Boost will give small businesses’ access to a 20% bonus deduction for eligible external training courses to upskill their employees. The boost applies to expenditure from 29 March 2022 until 30 June 2024 and will provide $550 million in tax relief.
- A $5.6 million investment into a dedicated small business unit within the Fair Work Commission will provide tailored support to small businesses to reduce time, cost and stress.
