The following points were mentioned in the 2023-24 Federal Budget by Australia’s Treasurer, the Hon. Jim Chalmers MP, on Tuesday, 9th May 2023.
Instant asset write-off
This measure refers to fully expensing an asset with a threshold of up to $20,000 per eligible asset.
The catch is that the small business revenue must be below $10 million per annum in financial year. The time-frame for the first use or installation of the eligible asset covers only from 1st July 2023 to 30th June 2024 financial year.
Electricity
The Federal Government will partner with the state and territory governments to provide an electricity bill relief for eligible small businesses and households. The $3 billion allocated for this relief will not go directly to the small business or households but to the electricity providers. It is then up to the electricity providers to decide how to divide what they receive to their customers as a credit on this bill.
Small business energy incentive
Small businesses with revenue less than $50 million will be supported to undertake energy-efficient asset expenditure for electrical goods, energy storage, heating and cooling. A 20% bonus tax deduction is applicable for such energy-efficient upgrades. An eligible business will be able to claim up to $100,000 of expenditure for assets installed and ready for use in the 2023-24 financial year.
Superannuation guarantee
The compulsory Super Guarantee Contribution that is currently due for payment by the 28th day after the preceding quarter is to change to the same day that wages are paid. However, this is not to start until 1st July 2026.
At this stage, it is unclear whether there is any relief or flexibility on the penalties imposed on employers who have cash flow difficulties in making this payment so quickly.
Please note, the final legislation to be passed by parliament will provide further clarification on the above matters; hence, the above is what is perceived to take place.