As an employer or small business owner, there’s always plenty of reasons to cast an eye over the Federal Budget. Whether it’s changes to taxes, new access to funding or impacts to the greater economy, there’s rarely a budget that won’t affect your business. But the budget is a mammoth, dreary read, and not everyone has the time to run a fine-tooth comb over its contents.
Luckily for you, we did! So, here’s what the 2023 Australian Federal Budget means for businesses, and what it might do for you.
Write-offs and relief
As the cost-of-living crisis rages on, small businesses with annual turnover below $10 million are eligible for a $20,000 instant asset write-off, available from 1 July 2023. Any asset you purchase for business purposes will be eligible, as long as it costs less than $20,000.
The introduction of the Energy Bill Relief fund will see eligible small businesses shave up to $650 off their energy bill, depending on what state you’re in.
Energy is a big focus in this year’s Budget, with the Small Business Energy Incentive (AKA: tax break!) invented to help small businesses electrify and save on energy bills. There’s a number of ways to do it, with the maximum deduction being $20,000 per business.
Support for small businesses and start-ups
Launching in late 2023, the government will invest nearly $400 million in a new Industry Growth Program for small and medium enterprises (SME’s) and startups. It aims to provide advice and matched grant funding to help new and small businesses grow.
They’ve also announced $54.3 million, over five years, of additional funding to the Australian Apprenticeships Support Network, to increase apprenticeship completion rates and the diversity of the apprentice workforce. Investment in training and development, especially of new and diverse groups of workers is always a good thing.
Restructuring Self-Employment Assistance
The Self-Employment Assistance (SEA) program, which My Pathway delivers in multiple regions, will be refreshed. The government is refining the funding model to more accurately reflect the utilisation of places and reward regions and providers who successfully deliver outcomes for clients.
The program provides flexible mentoring and support to entrepreneurs and micro businesses (<4 employees), helping them to start or strengthen their business. You can read more about some of the many businesses we’ve helped grow here.
There’s plenty of support in this year’s Budget for employers and small business owners, and we very much hope you are able to take advantage of it!
If you would like more information on anything we’ve covered above, contact us to find out more!
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