It’s been a big week for number nerds like me across the country. The Federal Treasurer, Josh Frydenberg, handed down the 2022 Federal Budget and we all scurried to read through the details to find the highlights affecting our clients. Below is our “Big Bite of the Budget Burger” – a quick summary of what we saw as most important for small business.
Tax boosts for small business
Skills & training
For every $100 an eligible business spends on external training courses for employees, they will
receive a $120 tax deduction. This applies for any courses paid for after 7.30pm on 29 March 2022 until 30 June 2024
Digital adoption
For every $100 an eligible business spends on costs that support digital adoption, such as cyber security, portable payment solutions and
subscriptions to cloud-based services, they will receive a $120 tax deduction. This will include subscriptions to all those cloud-based
automation software products that I hold dear to my heart. A maximum of $100,000 of costs in each financial year will be eligible for this
boost. This applies from 7.30pm on 29 March 2022 until 30 June 2023
Extension of COVID-19 Grants
The government has extended until 30 June 2022 the measure which enables payments from
State & Territory COVID-19 business support programs to be classed as non-assessable non-exempt (NANE) for income tax purposes. The
benefit of these payments being classed as NANE is that they do not attract income tax and nor do they absorb carried forward tax losses.
Instant Asset write off
One long standing policy that has been repeatedly extended in the past is the instant asset depreciation program. This was not extended in
the Budget and could end on 30 June 2023.
Financial support for small business
Apprentice wage subsidy
The Boosting Apprenticeship Commencement (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies will be extended by 3 months
until 30 June 2022.
Funding for new initiatives
A range of funding measures were alluded to delivering support to small business including the Payment Times Reporting Portal & Register
(to improve efficiency and reporting), the Australian Small Business and Family Enterprise Ombudsman (to improve financial capability), the
New Access for Small Business Owners program (to improve mental health outcomes) and the Small Business Debt Helpline program (to provide
tailored financial counselling).
Streamlining admin for small business
Taxable Payments Reporting (TPAR) Streamlining
Businesses will have the option to provide Taxable Payments Reporting on the same reporting cycle as their activity statements rather than
annually. They will also be allowed to lodge via their accounting software. This applies from 1 January 2024 and is subject to the ability
of software providers to be ready for the change.
Government procurement rule changes
There are changes to procurement rules to make it easier for small businesses to win contracts and have government-invoices paid more
quickly to improve cash flow.
And that’s a wrap! Reach out if you need any more information.
