There are some important changes you need to know about that could affect your business, so it's crucial to stay informed. We've got you covered with a quick overview of the key changes, and we'll also share some helpful videos that dive into how the budget affects businesses like yours.
See our Top 5 points below, watch a video, or check which changes apply to you using our handy ready-reckoner table below. Call us now on (03) 8360 9061 or send us a message via our contact form.
1. Temporary full expensing extension:
The temporary full expensing measure has been extended for an additional 12 months until 30 June 2025. This allows eligible businesses to immediately write-off the cost of eligible assets such as plant and equipment, and claim a tax deduction in the year the asset is first used or installed. Maximum deductions apply.
2. Boost for new businesses and startups:
The government will introduce a range of measures to support new businesses and startups, including a new entrepreneur visa, streamlined company registration, and targeted funding for innovative companies.
3. Renewable energy incentives:
The budget includes a range of initiatives to support the growth of renewable energy, including tax incentives for businesses investing in green technologies and expanded funding for research and development in renewable energy.
4. Superannuation changes:
The budget includes changes to the superannuation system, including a new $10,000 annual cap on after-tax contributions for high-income earners and changes to the treatment of excess concessional contributions.
5. Unlocking employment:
Spending to increase skilled migration, incentivise older workers and boost numbers of student workers and TAFE graduates.
For a quick video on the Budget for Business, see this video:
For a quick check on what changes affect you, see our Budget Breakdown table here:
Organization/Type | 2023 Federal Budget Change | Value | Eligibility |
Small/Medium Businesses | Instant asset write-off threshold increase | Up to $100,000 in immediate deductions for eligible assets purchased after 30 June 2023. | SMBs with an aggregated annual turnover of less than $50 million. |
Small/Medium Businesses | Temporary loss carry-back measure | Eligible companies can offset tax losses against previous profits and receive a refund of tax previously paid. | Companies with an aggregated annual turnover of less than $5 billion and that have tax losses in the 2022-23 or 2023-24 financial years. |
Superannuation Funds | Superannuation Guarantee rate increase | The SG rate will increase from 10% to 10.5% from 1 July 2023. The SG rate will continue to increase by 0.5% each year until it reaches 12% in 2027. | All employees who earn more than $450 per month. |
Superannuation Funds | Minimum income threshold for SG payments removed | All employees will receive superannuation regardless of their income level. | All employees who earn any amount of income. |
Self Managed Super Funds | SMSF residency requirements | The government will remove the "active member" test for SMSF residency requirements. This means that SMSFs will be treated as Australian residents for tax purposes unless they hold an investment in a foreign entity or make a contribution to a foreign super fund. | All SMSFs. |
Self Managed Super Funds | Limited recourse borrowing arrangements (LRBAs) | The government will prohibit SMSFs from using personal guarantees as security for LRBAs. | All SMSFs. |
Family Trusts | Capital gains tax (CGT) discount | The government will reduce the CGT discount for trusts from 50% to 25% from 1 July 2023. | All family trusts. |
Charities | Deductible gift recipient (DGR) status | The government will introduce measures to simplify and streamline the DGR application process, making it easier for charities to obtain DGR status. | All charities that meet the eligibility criteria for DGR status. |
New Businesses and Startups | Startup tax offset | Eligible companies will be able to claim a tax offset of up to $10,000 per year for the first three years of operation. | Newly established companies that meet the eligibility criteria for the offset. |
Renewable Energy | Investment in renewable energy | The government will provide $2 billion in funding for the development of new renewable energy projects, including wind, solar, and hydrogen. | Companies and organizations involved in the development of new renewable energy projects. |
These changes have significant implications for businesses of all sizes, and it's important to understand how they may impact your financial planning and tax strategies. As always, our team of expert accountants is here to help you navigate these changes and ensure that you are well-informed and well-prepared for the future.
Call us now on (03) 8360 9061 or send us a message via our contact form.