Federal Budget Update 2023-24

Against a backdrop of heightened cost of living pressures, Treasurer Chalmers’ second budget has positioned itself as a response to both alleviating the impacts of inflation and boosting wage growth.

Measures have been introduced to provide timely benefits to individuals, including financial aid for electricity costs and increased welfare payments for parents, students, jobseekers, and those seeking rental assistance.

This budget also promises wage hikes for aged care workers and a record-breaking tripling of the Medicare bulk-billing system.

However, for businesses of all sizes it seems the Australian Taxation Office (ATO) will be making many more visits, as compliance is a top priority.

Unfortunately, the benefits for small businesses are relatively insignificant and overshadowed by additional administrative burdens, particularly the changes to the instant asset write-off scheme and the frequency of superannuation payments.

What does this mean for small business:

• From 1 July 2023 until 30 June 2024 the instant asset write off threshold changes to $20,000 for small businesses with aggregated turnover of less than 10 Million
• Quarterly Tax & GST Instalments are set to decrease
• From 1 July 2026 employers will be required to pay their employees super guarantee entitlements on the same day that they pay salary and wages
• For eligible ‘Build to rent developments” you will be entitled to a 4{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} capital works deduction up from 2.5{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83}.

Some may argue that this budget falls short of expectations and it is clear that there is still much room for improvement in supporting small business.

At TTO, we are committed to supporting you every step of the way. Our team is here to help alleviate the pressure and help you build a brighter future for your business.

Don’t hesitate to reach out and check in with us today on 08 8211 9426.