10th May, 2023
The 2023 Federal Budget focuses on “providing responsible and affordable cost-of-living relief, prioritising those most in need”, making significant investments in Medicare and the care economy, and fostering growth through clean energy, technology, and small businesses.
The Albanese Government is aiming to ensure greater security during uncertain economic times and expand opportunities across the nation.
Treasurer Dr Jim Chalmers says this Budget will lay the groundwork for a better future by supporting people through difficult times and setting Australia on a path to maximise opportunities in the decade ahead.
The government has announced a series of measures, focusing on supporting small and medium-sized enterprises (SMEs), addressing skills shortages, and enhancing regional development.
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The Instant Asset Write Off has been temporarily increased to $20,000, allowing small businesses to immediately deduct the full cost of eligible assets between 1 July 2023 and 30 June 2024.
To improve cash flow, the GDP adjustment factor for PAYG and GST instalments has been reduced to 6%.
The Industry Growth Program has received $392.4 million to support SMEs and start-ups to support Australian SMEs and startups to commercialise their ideas and grow their operations, while $39.6 million has been allocated for the Single Business Service, supporting SMEs engagement with all levels of government.
The Small Business Energy Incentive offers a 20% additional deduction for eligible depreciating assets that support electrification and energy efficiency.
The Energy Bill Relief Fund has been established to provide targeted energy bill relief for eligible households and small business customers.
The Regional Small Business Support Program Pilot has been extended until 30 June 2023, with $2.3 million in new funding.
ATO-related compliance will be reduced, including expanding the independent review process for small businesses and establishing five new tax clinics. A tax integrity and lodgement amnesty is being provided for small businesses to encourage re-engagement with the tax system.
The amnesty will remit failure-to-lodge penalties for outstanding tax statements lodged in the period from 1 June 2023 to 31 December 2023 that were originally due during the period from 1 December 2019 to 29 February 2022. So, you have until the end of the year to do so without penalty.
The government will invest $27.4 million over four years to improve workplace safety and fairness, including award pay reviews, reducing the gender pay gap, and addressing employee-like forms of work.
The Powering the Regions Fund will allocate an additional $1.3 billion to support local manufacturing solutions, including the Clean Energy Industries Stream.
A total of $116 million will be invested in growing Australia’s critical technologies industries, with a focus on quantum and AI technologies.
The Build to Rent initiative will provide tax incentives for eligible new build-to-rent projects.
The Australian Skills Guarantee will ensure that one in 10 workers on major government-funded projects is an apprentice, trainee, or paid cadet.
The Commonwealth foundation skills program will be redesigned and extended with a budget of $12.9 million.
Targeted support for apprenticeships will receive $54.3 million over five years, and grant funding of $5 million over three years will support women in non-traditional trade apprenticeships.
A six-month extension will be provided for to incentive pensioners (age and veteran) back into the workforce measure.
The 2023-24 permanent Migration Program will return to a planning level of 190,000 places, with 137,100 allocated to the Skill stream.
Temporary Skill Shortage (TSS) visa holders will have easier access to permanency, and the limit of one onshore renewal for the short-term stream TSS visa will be removed.
New Zealand citizens residing in Australia will have a direct pathway to Australian citizenship from 1 July 2023.
Superannuation payments will be required on the same day as wages and salary from 1 July 2026.
Superannuation concessions will be reduced for balances over $3 million.
The Electric Car Discount will be amended, sunsetting the eligibility of plug-in hybrid electric cars and for the government to support them in doing so.
These measures aim to provide much-needed relief, support, and opportunities for businesses and individuals across Australia, to drive economic growth, foster innovation, and create a more inclusive and prosperous society.
By investing in the future through targeted initiatives, the government is aiming for long-term success in a rapidly changing world.
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