What’s in it for small business?
Most of the measures announced in the budget had already been announced at some point. There was very little new news for small business. The budget is attempting to support those people who may be struggling in these times of higher inflation and increased interest rates, without adding to inflationary pressure.
Measures by government to recover debt
The government has been very quiet on recovering tax debt during and after covid. Budget measures to ramp up recovery of tax debt and combat fraud are now well funded projects.
Small business must ensure compliance is up to date and accurate.
The government is also increasing their compliance focus on unpaid super and rental properties.
The Australian Taxation Office was given more time to notify taxpayers that they will have their BAS refund retained pending review. This now allows 30 days for notification. The Australian Taxation Office also has a budget of $187 million over 4 years to address tax, GST and super fraud.
Payday Super
Payday Super reform coming into force 1 July 2026. This means businesses will need to pay the superannuation for employees at each pay event. This is a big change and there will be a lot of information on this coming out during the next year.
Instant Asset Write Off
This has been extended for an extra year to access the Instant Asset Write Off for assets up to $20,000. This is good for any business needing capital equipment or vehicles.
Electricity
Small business owners will get a $325 energy rebate.
Individuals will also get a $300 energy rebate.
Superannuation
Superannuation Guarantee rate is increasing to 11.5% from July 2024 and then up again to 12% in July 2025.
Paid Parental Leave
Superannuation is to be paid on paid parental leave.
The government announced that from 1 July 2025 it will pay superannuation on the government-funded Paid Parental Leave (PPL) which will be administered by the Australian Taxation Office.
There is extra support of $10 million for small businesses to help administer the paid parental scheme, though as yet we do not have details on how to access those grants.
HELP debts
There is change to the indexation methods, backdated to 1 June 2023. The average HELP debt will reduce by $1200.
Mental Health and Cyber Security
There was funding allocated to programs affecting mental health of small business operators as well as cyber protection which is welcomed.
Stage 3 Tax cuts
These tax cuts were announced before the budget.
These commence 1 July 2024 and they are tax cuts to Individual taxation.
Click HERE to see details.
