The 2022-23 Budget is a crucial indicator of what you can expect in the coming year in terms of the government’s focus on support for businesses and business owners.
Support for Small Business owners
- A dedicated unit in the Fair Work Commission will be created to help with unfair dismissal and general protection disputes.
- An addition of $4.6 million for Beyond Blue’s New Access to assist small and family business owners who need tailored mental health support.
- Providing free financial counselling to business owners through the addition of $2.1 million to extend the Small Business Debt Helpline which is operated by Financial Counselling Australia.
- Offering business planning, capacity building and financial literacy to businesses through the Australian Small Business and Family Enterprise Ombudsman which is to receive $8 million.
Boost in technology investment
The Finance Ministry has allocated $1 billion to encourage small businesses to go digital. This includes portable payment devices, cyber security systems and subscriptions to cloud-based services. SMEs with an annual turnover of less than $50 million will be able to deduct an added 20% of the cost of the expenses and depreciating assets supporting this digital transition. The grant will apply to eligible expenditures for up to $100,000 per year until the end of the fiscal year 2023.
Support in Skills, Training and Apprenticeships
There was a significant support and tax relief of $550 million announced in the budget for the fiscal year 2022-23. Small businesses will now have access to a 20% bonus deduction for external training courses for upskilling employees. The Skills and Training support will apply to expenses incurred from Budget night until 30th June 2024. The Apprenticeship Commencement wage subsidy, which provides business owners with 12 months of wage subsidy support initially has also been extended by 3 months to 30 June 2022.
Temporary fuel relief
The federal government will reduce fuel excise duty by 50% for 6 months due to the recent rise in fuel prices and boost small businesses. This will reduce excise duty on petrol and diesel from 44.2 cents per litre to 22.1 cents per litre.
Lower small business taxes
There is a further tax reduction for small and medium businesses from 30% in 2013-14 to 25% from 1 July 2021 as announced by the Australian federal government in the budget. This reduction is the lowest we have seen in the last 50 years.
How can SMG help?
At SMG we are committed to assisting small and medium businesses in getting accustomed to new business changes and helping them grow. Our experienced team can assist employers with the correct steps towards development with the current budget and help businesses pick themselves up since the covid pandemic and recent rise in inflation.