Budget Highlights for Business Owners

$1.0 billion for a new Technology Investment Boost to encourage small businesses to go digital. Small businesses with annual turnover less than $50 million will be able to deduct a bonus 20% of the cost of expenses and depreciating assets that support digital uptake. This includes; portable payment devices, cyber security systems and subscriptions to cloud-based services.

The boost will apply to eligible expenditure of up to $100,000 per year, incurred from Budget night (29 March 2022) until 30 June 2023.

Small businesses will have access to a new 20% bonus deduction for eligible external training courses for upskilling employees. The Skills and Training Boost will apply to expenditure incurred from Budget night (29 March 2022) until 30 June 2024, providing $550 million in tax relief.

The Boosting Apprenticeship Commencement wage subsidy, which provides employers with 12 months of wage subsidy support, has been extended by 3 months to 30 June 2022.

Reducing fuel excise by 50% for 6 months. This will see excise on petrol and diesel cut from 44.2 cents per litre to 22.1 cents per litre. The Australian Consumer and Competition Commission (ACCC) will make sure retailers pass the full discount to motorists.

More than $21 billion in tax cuts will be delivered to small businesses from 2015-16 to 2024-25 with around $2.6 billion flowing in 2022-23. This includes reducing the company tax rate for small businesses from 30% in 2013-14 to 25% from 1 July 2021 – the lowest level in 50 years.

The 10% GDP uplift rate that applies to PAYG and GST instalments will be reduced to 2% for the 2022-23 financial year, subject to the legislation being passed in parliament.

Dedicated small business unit in the Fair Work Commission

A dedicated unit in the Fair Work Commission will be established to support small businesses dealing with the Commission. It will help with unfair dismissal and general protections disputes.

New Access for Small Business Owners program

An additional $4.6 million over two years to ensure Beyond Blue’s New Access for Small Business Owners program can expand and continue to assist small and family business owners who need tailored mental health support.

Small Business Debt Helpline

$2.1 million to extend the Small Business Debt Helpline operated by Financial Counselling Australia for free financial counselling.

Australian Small Business and Family Enterprise Ombudsman

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) will receive $8 million to work with proven service providers to offer business planning, capacity building and financial literacy.

Changes to the paid parental leave scheme to combine the ‘dad and partner pay’ with the ‘parental leave pay’ entitlement, to create a single scheme of 20 weeks, meaning parents can choose to split the leave between them in whatever way they’d like. Single parents will also be able to access the full 20 weeks of leave.

Support will be provided for businesses to re-establish their presence overseas, support and training in getting a product or service to market, and reduction in regulatory burden on exporters.

$10.4 million over two years to enhance and redesign the Payment Times Reporting Portal and Register to improve efficiency and reporting.

Small and family businesses in rural, regional and peri-urban areas will benefit from a substantial upgrade to NBN fixed wireless services. $480 million has been allocated to extend the coverage range from towers and increase the speed of services to customers. $4.8 million will go towards extending the Mobile Network Hardening Program to support network resilience upgrades in regional Australia.

The Australian Bureau of Statistics (ABS) will receive $19.9 million to develop a new reporting application to enable businesses to submit survey business indicators directly through their accounting software.

Fees associated with Australia’s Business Registers will be streamlined, including the removal of the company annual late review fee.

A series of further reforms to insolvency arrangements are funded in the Budget, including $22 million to address unfair preference payment rules, $7 million to clarify the treatment of trusts with corporate trustees and just under $1 million to implement recommendations from the Safe Harbour Review.