Announced on 29 March 2022, the Federal Budget provides a range of support programs to help small business owners drive economic growth and employment as the country emerges from the pandemic.
Here is an overview of the main announcements that are likely to have an impact on small businesses.
Tax related measures
Skills and Training Boost
Provides small businesses with access to a 120 per cent tax deduction for the cost of external training courses to their employees.
Technology Investment Boost
Provides small businesses with access to a 120 per cent tax deduction (capped at $100,000) for expenses and depreciating assets associated with digital uptake. This can include purchasing cyber security systems, cloud-based services, accounting or e-invoicing software as well as hardware devices such as computers and payment devices.
Reduced GDP uplift rate
The 10 per cent Gross Domestic Product (GDP) uplift rate that applies to PAYG and GST instalments will be reduced to 2 per cent for the 2022-23 financial year, subject to the legislation being passed in Parliament.
Small business support programs
Additional funding has been provided for the extension of the following Federal Government supported business services:
- The Boosting Apprenticeship Commencement wage subsidy has been extended by three months to 30 June 2022. This program provides employers with 12 months of wage subsidy support when taking on new apprentices.
- New Access for Small Business Owners to assist small business owners who need tailored mental health support.
- Small Business Debt Helpline to provide free financial counselling services.
- The Australian Small Business and Family Enterprise Ombudsman to provide business planning, capacity building and financial literacy services.
As well as the following new service:
- Dedicated small business support unit within the Fair Work Commission to provide help with employment issues including unfair dismissal and general protections disputes.
Industry specific COVID-19 recovery support
The Federal Government will provide additional assistance to the arts, tourism and export industries to assist with their recovery from the impact of COVID-19, including:
- $38 million for the arts sector, including independent cinemas.
- $146 million to support the recovery of the tourism industry (including assistance for travel agents)
- $80 million over four years to help small and medium businesses re-establish their presence in overseas markets.
Greater access to Federal Government contracts
Revised procurement rules will be introduced to help small and medium businesses to secure Commonwealth contracts. As part of these changes, Federal Government departments will be required to split up major projects in order to give smaller contractors more opportunity to compete for the work.
Visit the Budget 2022-23 website for more information on these and other commitments announced as part of the Federal Budget.