2023 Budget Update
News, Tax & Accounting

2023 Budget Update

Well, as expected there was very minimal announcements for small businesses in last night’s 2023 Federal Budget update.

The focus of the budget was mainly at relieving some of the cost-of-living pressures felt by the most vulnerable Australians.

Measures to support cost-of-living pressures included:

  • Very modest increase of $40/fortnight to the JobSeeker, Austudy and Youth Allowance payments
  • Extending higher payments of JobSeeker to those aged 55 and over that have been on the payment for 9 months or more (previously available to over 60s)
  • Energy Rebates: these will vary by State.
  • Tripling of the bulk billing incentive, aimed at creating more access to bulk billing appointments for those under 16, pensioners or concession card holders.

For Small Businesses there’s a couple of items of note:

  • As expected, Temporary Full Expensing will cease on 30 June 2023. We do see the reintroduction of Instant Asset Write-off for those with less than $10m turnover.  The threshold per asset will be $20,000 for the 2024 financial year. For small businesses, all other assets can be depreciated under the small business pool rate of 15% in the first year and 30% in subsequent years.
  • Incentive for more energy efficient purchases: This will act as an extra tax deduction of 20% for spending that supports electrification and more efficient energy use. This is available for businesses with less than $50m turnover with a maximum incentive of $20,000, meaning up to $100,000 worth of spending.
  • For Employers to put on their horizon: We’ve seen STP1 and STP2 the next project will be immediate super payments.  The government has announced that from July 2026 employers will need to pay super at payday rather than quarterly.

Superannuation:

  • The previously announced measure regarding doubling tax on members who have more than $3m in superannuation remains in the budget with no apparent changes to previously announced detail. We covered this announcement previously here

That’s it for the budget from our perspective. There remains no mention of any tinkering or cancellation of Stage 3 tax cuts, due to commence 1 July 2024…but there’s still next year’s budget before these come in and significant project commitments to pay for into the future.

 

Recent Posts

Your Guide to Tax Planning

Tax planning plays a vital role in both personal and business finance, yet it is often neglected until tax season approaches. However, understanding and implementing effective tax planning strategies can make a significant difference in your financial well-being. In this guide, we’ll explore what tax planning entails, why it’s essential, and when you can leverage it to your advantage.

How To Increase And Maintain Cashflow In Your Business

In this blog post, we’ll explore strategies to enhance your business cashflow, systemise your accounts, and make informed decisions with confidence. Let’s dive in!

Understanding Gifts & Inheritances Tax

In Australia, gifts and inheritances are generally not considered taxable income. This means that if you receive a gift or inheritance, you do not have to declare it on your tax return or pay any Australian tax. However, there are some situations where tax may apply, particularly when assets are involved.

Recent Tax Agent Changes: What It Means for Accountants & Clients

The accounting profession is built on trust, ethics, and compliance. As accountants, we have an obligation to act in the public interest, ensuring integrity and professionalism in everything we do. Recent changes to the Tax Agent Code of Professional Conduct introduce new requirements that reinforce these principles. At Lemonade Beach, we fully support ethical business practices and see well-structured legislative updates as an opportunity to further strengthen client trust and industry standards.