What small businesses need to know about the budget
Are you a small business owner, wondering what the 2022-23 budget will mean for your business?
Here are some changes that might affect your tax payments:
- Small and medium sized businesses will be able to deduct an extra 20% of their expenditure on external training courses for their employees. The expenses must be incurred between 29 March 2022 and 30 June 2024, need to be provided by Australian entities external to the business, and can be claimed on tax returns from the 2023 financial year.
- A technology investment boost will allow small and medium sized businesses to deduct an additional 20% on purchases that allow them to increase their digital adoption. This means that your business can claim extra tax back on items such as cyber security systems, software subscriptions, or online sales platforms.
- Companies will be able to choose to calculate your PAYG instalments based on your current performance, tracked through your accounting software. This is expected to begin on 1 January 2021 and may help businesses improve your cash flow.
- Businesses will have the option to report Taxable Payments Reporting System data through accounting software at the same time as your activity statements, beginning 1 January 2024.
- Certain COVID-19 support payments have been made non-assessable non-exempt income for income tax up to 30 June 2022, extended from the announcement made Sep 2020.
- Support package includes funding for small business initiatives, including: enhancement of Payment Times Reporting Portal and Register, support for Australian Small Business and Family Enterprise Ombudsman, funding for mental health support for small business owners, and extension of Small Business Debt Helpline program for small business financial counselling.