The federal budget for the 2022-2023 fiscal year was handed down this week.
Here is a summary of what it means for you and your business.
Small Business – skills and training boost
The Government is introducing a skill and training boost to support small businesses (with an aggregated annual turnover of less than $50 million) to train and upskill their employees.
Small Business – technology investment boost
To support digital adoption, small businesses (with an aggregated annual turnover of less than $50 million) will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption (e.g. portable payment devices, cyber security systems or subscriptions to cloud-based services).
PAYG instalment system
From 1 January 2024, companies will have the option to calculate their PAYG instalments based on the current financial performance of their business.
Varying GDP uplift on PAYG and GST instalments
Small to medium businesses will benefit from reducing the uplift rate that applies to Pay-As-You-Go (“PAYG”) instalments and GST instalments.
Storm and flood incentives – tax treatment of qualifying grants
Income tax exemption will be provided to small businesses and primary producers who received qualifying grants following the storms and floods in Australia.
Fuel and alcohol excise reporting
From 1 July 2023, fuel and alcohol businesses with an annual turnover of less than $50 million will be able to lodge and pay excise and excise-equivalent customs duty every quarter.
Reform and deregulation of Australia’s regulatory environment is a key focus of the Government in the 2022-23 Budget.
Click here for more detailed information on the federal budget overview.
If you have any questions about how the new measures will impact you book a time that suits you.
Tim Goode Managing Director | Ignite Accountants