The Federal Budget, announced on 9 May 2023, provides a range of support programs to help small business owners with cost pressures and contemporary challenges.

Here is an overview of the main announcements that are likely to have an impact on small businesses.

Tax related measures

Instant asset write-off extended and increased

The instant asset write-off has been temporarily increased and extended.

Eligible small business owners can deduct up to $20,000 per business asset/resource for the 2023-24 tax year. These purchases must be installed and ready for use in your business between 1 July 2023 and 30 June 2024.

Temporary full expensing ends

Temporary full expensing will conclude at the end of the 2022-23 tax year. This measure applies to the 2020-21. 2021-22 and 2022-23 financial years.

PAYG and GST uplift

To help boost cash flow, PAYG and GST uplift rates will be set at 6 per cent for the 2023-24 financial year instead of the 12 per cent that would have applied under the statutory formula.

Small business support programs

Energy bill relief

From July 2023, eligible households and small businesses will be provided with energy bill relief. This will be $400 for households and up to $650 for small businesses in Western Australia.

Small Business Energy Incentive

This tax incentive will provide an additional 20 per cent tax deduction (up to $20,000) for eligible assets that support electrification and more efficient energy use.

This incentive does not apply to electric vehicles.

Industry Growth Program

$392.4 million has been committed to the Industry Growth Program which aims to help small to medium sized start-ups commercialise their business ideas and grow their operations. The program will provide business grants and mentorship programs.

Cyber Wardens Program

To help small business owners build their in-house capability to protect themselves from cyber threats, $23.4m has been committed to the Cyber Wardens Program. This program will run for three years and will be delivered by the Council of Small Business Organisations Australia (COSBOA).

Regional Pharmacy Maintenance Allowance

$79.5 million over four years has been allocated to the Regional Pharmacy Maintenance Allowance - which will double the current payment amount.

This funding will help maintain the ongoing operation of community pharmacies in regional and rural areas.

Funding to adopt AI and quantum technology

$101.2 million over five years has been committed to support small businesses integrate artificial intelligence (AI) technology to improve their business processes and increase competitiveness.

This funding also includes expansion of the National AI Centre, establishing an Australian Centre for Quantum Growth and a Critical Technologies Challenge Program to support projects utilising quantum computing.

Greater access to Federal Government contracts

The Department of Finance will be implementing measures to improve the ability for small to medium sized enterprises (SMEs) to compete for government procurement opportunities. This will include improvements to AusTender to increase transparency and establish a supplier portal for panels.

Support for systemic issues

As part of the budget, the Australian Competition and Consumer Commission will be establishing a complaints mechanism that will allow small business advocacy groups raise systemic issues.

More information

Visit the Budget 2023-24 website for more information on these and other commitments announced as part of the Federal Budget.