Budget 2022-23 is Good News for Small Businesses

The Treasurer delivered the Federal Budget on Tuesday 29 March 2022 marking yet another milestone in leading Australia out of the pandemic. Australia has outperformed all of the major advanced economies in its ability to rebound into a thriving and robust economy providing a positive outlook for small businesses moving into 2022-23.

This year’s Federal Budget provides well considered structural reform that will greatly benefit small businesses in the medium and long-term.

  • Supporting Small Businesses to Go Digital

Small businesses who seek to improve their digital sectors whether it be through training new employees in technological fields or purchasing related assets such as laptops and servers are eligible to claim a bonus 20% tax deduction up to a total of $100,000 expenditure.

  • Structural Reforms to Taxation

Changes to the “Pay-As-You-Go” tax calculations has drastically improved cash flows for small businesses. The federal government has proposed a reduction of the GDP “uplift” rate from 10% to 2% which is forecasted to improve cash flows of over 2.3 million taxpaying businesses.

  • Investment in skills and training

From 1 July 2022, a new Australian Apprenticeships Incentive System will commence. The federal government has pledged $2.8 billion to increase apprenticeship uptake levels and employee retention through wage subsidies for small businesses.

Contact us at First Choice Business Brokers at (03) 9899 1888 for all the help you need to secure a great business opportunity.