A quick summary of the Budget’s Small Business Top 5, (more detail to follow in future posts)

  1. Immediate Asset Write Off – Temporary full expensing of Capital assets continues until 30/6/2023. (for more detail see link below)
  • Buy New assets (and 2nd hand if your T/O <$50M) between now and 30 June 2023 will deliver you an upfront tax deduction for the full cost of the eligible items.
  • Normal depreciation applies from 1/7/2023 (except for certain digital assets i.e. patents, designs, software)
  1. Employment incentives – Take on more employees, subsidies for apprentices and digitising Australia. (for more detail see link below)
  • New incentives will reduce the cost of taking on new employees.
  • Take on more apprentices with increased subsidies and support. (for more detail see link below)
  • If you are in the digital industry, a combination of investment incentives, digital infrastructure spend and skills spending might provide benefits for your business. (for more detail see link below)
  1. Friendly incentives for struggling businesses to help you stay in business.
  • Financial incentives if you operate in certain industries.
  • AAT assistance to pause ATO debt recovery.
  • Government supported loans through the SME Recovery Loan Scheme.
  • Improvements to insolvency rules. (for more detail see link below)
  • Expanding access to the loss carry back regime. (for more detail see link below)
  1. Work incentives in childcare and super.
  • Improving affordability of childcare with the aim to increase workforce participation.
  • A plan to remove the $450 threshold for Superannuation Guarantee payments means that employees will start to receive super from the first $1 earned.
  1. Company Tax rate 25% from 1/7/2021.
  • Small to medium sized trading companies (with a turnover of less than $50 million).
  • This will also become your new franking rate for dividends you pay so consider whether to pay dividends this year, or bring forward expenses, to get a better tax outcome.

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