This week, the Federal Government announced the 2022-23 Budget. Set against the backdrop of Australia’s strengthening economy as the pandemic wages on, the Budget gears towards aiding businesses to continue growth efforts by delivering a handful of economic measures and relief schemes. Key issues like labour shortages, supply chain challenges and the cost of goods have all been considered.
Here we recap the notable announcements. Read on to learn more about what schemes or subsidies your business might be able to benefit from.
Measures to address the skilled labour shortage
Currently, access to qualified workers is one of the biggest pain points for Australian businesses. A result of record-low unemployment and limited migration in the past two years, the Government seeks to better support businesses to hire and retain key staff with the following announcements:
- In a boost to skills and training initiatives, small businesses will have access to a new 20% bonus deduction for eligible external training courses for upskilling employees
- 2020’s Boosting Apprenticeships Commencement (BAC) and 2021’s Completing Apprenticeships Commencements (CAC) wage subsidies will be extended until 30 June 2022.
- From 1 July 2022, a new Apprenticeships Incentive System will simplify existing subsidies (including BAC and CAC) into one program that will focus on delivering relief for businesses that employ trainees in priority fields.
In addition, the SME Recovery Loan Scheme is set to be extended until 2023. This scheme is available to SMEs, self-employed individuals and not-for-profit organisations with a turnover of up to $250 million whom were recipients of JobKeeper (4 January 2021 to 28 March 2021) or located in eligible LGAs affected by the floods in March 2021.
Support for small business’ digitisation
The past two years has seen record digital transformation by businesses as they’ve sought to manage operational challenges. To further support small businesses to digitise, the Budget includes a new Technology Investment Boost. This scheme will enable small businesses (annual turnover of less than $50 million) that uptake digital solutions, to deduct a bonus 20% off the cost of expenses and depreciating assets. For example, the cost of subscriptions to cloud-based services. Also e-invoicing, cyber security and web design.
Relief for supply chain and cost issues
Multiple marketplace factors continue to put pressure on the cost of goods and the international supply chain. As a result, the Government has pledged to provide relief to Australian households and businesses in the form of a one-off cost of living offset, and a cut to the fuel excise for 6 months.
In addition, temporary relief measures for small business in the calculation of PAYG and GST instalments were announced. These tax savings enable better cash flow management for SMEs as the country continues to face today’s market challenges.