Now that the dust has settled on the 2022 Federal Budget, it’s clear that there are a few announcements that every small business owner should know about. Make sure you are across the key changes to certain deductions, PAYG and GST installations, and economic support before we head into the next financial year. 

To help keep it simple, we have outlined everything you need to know about the most important federal budget announcements and how they impact you as a small business owner or sole trader in Australia.  

Small Business Technology Investment Boost 

What is it? Under this scheme, small businesses can claim extra money back as deductions for the cost of expenses and depreciating assets for investing in digital technology, including on: 

• portable payment devices, 
• cyber security systems, 
• subscriptions to cloud-based services,
• plus, much more – to be announced once the law has passed.

What does it mean for small businesses? The change aims to make it easier and more accessible for small businesses to implement new digital technology systems within their business. 

How much is it? The extra 20% on deductions can be applied to up to $100,000 each qualifying income year. After that, businesses can continue to deduct expenditures over $100,000 at existing rates.

When does it start? Immediately. 

When does it end: The program will run until 30 June 2023. 

Note: You will need to claim eligible expenditure between 30 March 2022 and 30 June 2022 as usual in your 2021-22 tax return AND the extra 20% bonus deduction in your 2022-23 tax return. For eligible expenditure in 2022-23 financial year, the full deduction can be made at the end of the relevant financial year.

Small Business Skills and Training Boost 

What is it? Small businesses can deduct an extra 20%  as deductions for spending on training courses for employees. This will work similarly to the Technology Investment Boost. External registered providers will need to deliver the training programs for them to be eligible for the extra deduction. In-house or on-the-job training will not qualify for the extra deduction. 

What does it mean for small businesses? The change aims to encourage small businesses to train new staff and upskill existing staff, promoting innovation and growth. Combine this deduction with the Technology Investment Boost to train your employees to use new software or technology within your business.

How much is it? There are currently no limits to expenditure. However, this may change when the budget becomes law. 

When does it start? Immediately. 

When does it end? 30 June 2024. 

Note: eligible expenditure between 30 March 2022 and 30 June 2022 needs to be claimed as usual in your 2021-22 tax return AND the additional 20% bonus deduction in your 2022-23 tax return. For eligible expenditure in 2022-23 financial year or 2023-24 financial year, the deduction can be made at the end of the relevant financial year. 

Cash Flow Support 

What is it? In 2022-23, the PAYG income tax and GST instalments will increase by 2 per cent, instead of 10 per cent for the income year. 

What does it mean for small businesses? The government said this change will mean lower tax instalments and improved cash flow for small businesses, sole traders and others who use the instalment amount method. 

When does it start? 1 January 2024. 

COVID-19 small business support 

• The Business Support Payments and Pandemic Leave Disaster Payment will receive another $53.9 million.
• The government will contribute $4.6 million to Beyond Blue’s NewAccess for Small Business Owners program, making it easier to access mental health support. 
• Plus, $2.1 million for Financial Counselling Australia’s Small Business Debt Helpline making it easier for small business owners to receive financial advice.