The ‘Ace in the Hole’ Budget 2023-24
With many families and individuals impacted by rising inflation and the general cost of living, it is no wonder that social initiatives have dominated this year’s Budget.
The key items that aim to help Australians ‘under the pump’ include::
- Energy bill relief for some households and small business
- Encouraging doctors to offer bulk billing by tripling the incentive for children under 16, pensioners and other Commonwealth card holders
- Increases to commonwealth rent assistance
- Increases to JobKeeper and other income support payments
- Expanding access to the single parenting payment
How the budget will impact Small Business
The government will reward small business owners with a range of financial measures to encourage investment and assist with cash flow. These measures will suit some, certainly the smaller taxpayer. However, they may not be generous enough as an alternative for many of the existing incentives that are due to cease.
Small businesses, with an aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.
As previously announced, the Small Business Energy Incentive provides an additional deduction of 20% of the cost of eligible depreciating assets that support electrification and more efficient use of energy. Businesses will be encouraged to buy energy-efficient fridges, electric cooling systems, batteries and other assets that “support electrification and more efficient use of energy.”
Small businesses also get energy bill relief as part of a scheme primarily directed at welfare recipients.
Normally, GST and PAYG instalment amounts are adjusted using a GDP adjustment or uplift.
In 2022-23, the Government reduced this uplift factor to 2% instead of the 10% rate that would have applied. And now for 2023-24, the Government has set the uplift factor to 6% instead of the 12% rate that would have applied.
4. ‘Payday’ super – Increasing payment frequency of employee super
As previously announced, from 1 July 2026, employers will be required to pay their employees’ super guarantee entitlements on the same day that they pay salary and wages. Currently, SG is paid quarterly.
As previously announced, plug-in hybrid electric cars will be excluded from the fringe benefits tax (FBT) exemption for eligible electric cars from 1 April 2025.
We’ll keep you up to date as the detail of these measures comes to hand.
To read the Budget in detail CLICK HERE
If we can assist you to take advantage of any of the Budget measures, or to risk protect your position, please let us know. Contact us on 1300 743 267