Key points from the 2023-24 Federal Budget

Federal Budgets can involve a lot of content. The following are a quick summary of the main issues. The other related article has more detail.

 

Budget surplus expected

The first surplus in a number of years.  A $4.2 billion surplus is predicted for the 2022-2023 financial year. 

 

Small business asset write-off

Current rules apply until the 30th June 2023 so action before then may be prudent for your business.  One-year small business instant asset write-off for assets up to $20k.

 

Small Business Energy Incentive

One-year Small Business Energy Incentive to switch to efficient energy sources such as electricity.

 

Household Energy Upgrade Fund

The move to solar and other energy saving systems is given a shove orward.  $1.3 billion Household Energy Upgrade Fund for home upgrades that save energy.

Boost to cyber skills

This should be a program that all small businesses get involved in.  Cyber security is one of the most misunderstood issues within this business group.  $23.4 million “Cyber Wardens” program to boost cyber skills in small businesses.

Minimum tax for multinationals

15 per cent global minimum tax and a domestic minimum tax from 1 January 2024 for multinational groups with global turnover of $1.2 billion or more.

Superannuation tax

Future earnings on super balances over $3 million will be taxed at an additional 15 per cent from 1 July 2025.  From 15% to 30%.

 

Change to super guarantee contributions

This change is expected to make a big difference to the efficiency of many small businesses.  Employers will be required to pay compulsory super guarantee contributions on payday rather than quarterly (from 1 July 2026).

 

Push towards net zero

Another authority! Establishment of a national Net Zero Authority.

 

Increased bulk-billing incentive

Perhaps giving medical practitioners more would be better but $3.5 billion over five years to increase the bulk-billing incentive for general practitioners.

 

Aged care workers wage increase

$11.3 billion wage increase for aged care workers.

More welfare support

Targeted relief for vulnerable members of the community – including JobSeeker recipients and Commonwealth Rent Assistance.

 

 

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