The last two years have been testing for everyone globally; Australia itself dealt with fires, a pandemic, and floods within the previous two years.
This year has brought a federal election to light and, in turn, a federal budget to match going into the final weeks before voting day.
So what does it mean for you? And what exactly does Josh Frydenberg’s 2022 budget mean for your business in Brisbane?
The first quarter of 2022 saw the announcement and scheduled date of the federal election and, in turn, the party’s budget for 2022-2023. Fryberg’s budget aims to demonstrate the fiscal dividend to a strong economy.
Although promising to deliver more jobs, heavy investments in defence, border security, health and education and roads and railroads, Josh Frydenberg’s 2022-2023 budget also addresses small business owners.
So let’s cover what that exactly entails for Brisbane business owners.
Josh Frydenberg’s budget announcement promises to help small businesses do what they do best and play their role as the engine room of our nation’s economy.
The government’s agenda – focused on aiding Australians successfully growing and running their business – expects to generate deregulation benefits in excess of $21 billion over 10 years.
A key priority is a continuous focus on streamlining business interactions with the government by introducing new measures to ensure compliance costs, streamline reporting requirements, and improve cash flow for Brisbane business owners – small and medium.
Brisbane business owners will benefit from the government’s proposed $5.6 million investment specifically dedicated to a small business unit, providing tailored support for small businesses, reducing time, cost and stress.
A further $8 million has been proposed to the Australian Small Business and Family Enterprise Ombudsman to work with service providers, offering business planning, capacity building and financial literacy aid for small Brisbane businesses.
Apart from the aforementioned cash influx and designated budget for small businesses, there are several other benefits to be attained by the government’s proposed budget.
The government’s proposal also includes other aspects such as:
The government has proposed more than $21 million in tax cuts for small businesses, which includes the reduction of company tax for small businesses from 30 per cent in 2013-14 to 25 per cent from July 2021 – the lowest level the nation has seen in over 50 years.
It means the tax relief for Brisbane business owners is substantial, enabling them to hire that extra worker, buy a new piece of equipment or refurbish a much-needed venue.
The government’s encouragement for small businesses to go digital sees a major boost with this year’s budget. The promised amount of $1 billion is targeted toward businesses with an annual turnover of less than $50 million.
In turn, such businesses are able to deduct 20 per cent of the cost of expenses and depreciate assets that support digital uptake.
Items such as portable payment devices and cyber security systems are included in the proposed plan.
So Brisbane businesses are able to apply for the eligible expenditure of up to $100,000 per year until 30 June 2023.
A further 20 per cent bonus deduction is on offer for eligible external training courses for upskilling employees.
An incentive that will boost knowledge and skills within many businesses and provide a further $550 million in tax relief – incurred until 30 June 2024.
Along with the many benefits already discussed, there are a few other plans that will help create more jobs and a stronger economy, such as:
With the implementation of such strategies and a large influx of cash, the subsequent strong labour market will introduce higher wages and lower the unemployment rate.
Taxes are unavoidable, stressful and sometimes manic inducing. So leaving it to the experts as you navigate your way through the small business world is not only logical but beneficial.
Brisbane business owners can benefit from passing on the baton and alleviating unwanted stress regarding business tax.
Here at Valles Accountants, we are such a company that prides itself on being the best small business accountants in Brisbane.
With over 35 years of experience, leaving the logistics to the experts is a no brainer. We can assist you and meet your business’s every need.
Your finances and business structure are dependent on success. So why not let success guide you and your business as we assist you through eligibility and criteria.
The release of the 2022-2023 federal budget will benefit many small Brisbane businesses but combing through the logistics is another matter altogether.
Ensuring your business is on the right track and reaping as many benefits as the government has sown is essential for survival and success.
So making sure you attain the right personal accountant Brisbane is just as crucial for the survival of your business here in sunny Brisbane.