$1.6B delivered to support digital and skills boost for small businesses
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As part of the plan for a strong economy and a stronger future, the Australian Government is delivering $1.6 billion in tax relief to boost small businesses into going digital and upskilling employees.
Building on previous small business investment incentives, the 2022-23 Budget includes a comprehensive package of measures to support small businesses to grow, innovate and create more jobs.
Under this Budget, the Technology Investment Boost will reduce the cost of businesses going digital to help them invest more in their digital capability. This measure will provide tax relief of $1 billion.
Over 3.6 million small businesses with an annual turnover of less than $50 million are expected to claim a bonus of 20 per cent deduction for the cost of expenses and depreciating assets such as portable payment devices, cyber security systems and subscriptions to cloud-based services.
Meanwhile, the Skills and Training Boost will help encourage small businesses to train and upskill staff. Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.
Aside from these projects, the Australian Government will also support small businesses through the following:
- $10.4 million to enhance and redesign the Payment Times Reporting Portal and Register, making it easier to view the payment practices of Australia’s largest organisations.
- $5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier for them to meet work obligations.
- $8 million to the Australian Small Business and Family Enterprise Ombudsman making it easier to access expert advice.
- $4.6 million to extend Beyond Blue’s NewAccess for Small Business Owners program, making it easier to access mental health support.
- $2.1 million for Financial Counselling Australia’s Small Business Debt Helpline making it easier for small business owners to receive financial advice.
Aside from these, the GDP uplift rate that applies to PAYG income tax and GST instalments will be reduced to 2 per cent for the 2022-23 income year.
This will lower tax instalments and deliver $1.85 billion in cash flow support for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.
The Australian Government continues to back small businesses to grow and create jobs as part of its plan for a stronger future.
Source: Prime Minister of Australia Media Release
Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.
