Bizally Budget Update
Bizally Budget Update
Last night, Treasurer Josh Frydenberg delivered the 2022-23 Federal Budget. As always, there are several measures that effect Small Business, which we have summarised below. More details will follow once legislation has passed. This could be delayed due to the upcoming election.
Business Technology Boost
From 7:30 AEDT, 29 March 2022 to 30 June 2023 the Government will provide a 120% deduction for expenses incurred by Small Business to support their digital adoption. Examples of digital adoption expenses include portable payment devices, cyber security systems or subscriptions to cloud based services. There is a cap of $100,000 on expenditure.
More details on this measure will follow, however, but you should keep records of any technology expenses from 29 March 2022.
Business Training Boost
From 7:30 AEDT, 29 March 2022 to 30 June 2024 the Government will provide a 120% deduction for expenses incurred by Small Business to support education and training provided to employees.
External training courses will need to be provided to employees in Australia or online and delivered by entities registered in Australia.
Apprenticeship Support Program
Under the new Australian Apprenticeships Incentive Scheme employers will be eligible for wages subsidies of 10% for first- and second-year apprentices and 5% for third year apprentices. The maximum payable for each apprentice is $15,000.
From July, new apprentices will be eligible for payments of $1,250 every six months for the first two years of their apprenticeship.
The Government has extended the reduction of superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent until 30 June 2023. This measure will benefit retirees by providing them with more flexibility as to how they manage their superannuation assets.
Cost of living measures
There will be a temporary reduction in the Fuel Levy which will apply for six months starting from April 2022. The reduction in the levy will be 22.1 cents per litre. This should reduce fuel prices.
The low- and middle-income tax offset will be increase from $1,080 to $1,500 in the 2021-2022 financial year.
If you would like to discuss these or any other measures, please do not hesitate to contact us on 03 9887 9144.