Tuesday night’s (9 May) Federal Budget contained some recognition of the pressure small businesses have been under. And hopefully, it means help is on its way.

“We know economic conditions have been challenging for Australia’s small businesses, which is why the budget delivers this support,” said the Minister for Small Business, Julie Collins.

“[The budget] provides targeted, responsible support, improves the overall business operating environment, and helps to reduce energy price pressures.”

From staffing to operating costs to cyber security, here are some ways the budget will impact your small business.

1.Writing off asset changes

Businesses that need new equipment, computers, furniture, cars, or other assets can benefit from changes to the instant asset write-off threshold to $20,000 from 1 July 2023 until 30 June 2024.

That means if your business has a turnover of less than $10 million, you’ll be able to immediately deduct assets costing less than $20,000, provided they’re first used or installed between 1 July 2023 and 30 June 2024. It will be applied on a per-asset basis, so you can write off multiple assets.

This is a watered-down version of previous measures introduced during the pandemic.

2. Lower power bills

With soaring power bills contributing significantly to business operating costs, $650 in bill relief is on its way from July.

The total amount of bill relief will vary by state, so check here for more information. To be eligible, your business must be on a separately metered business tariff with your electricity retailer – so if you run a business from home, you probably won’t qualify.

Meanwhile, as announced shortly before the budget, small and medium businesses can claim deductions of up to $20,000 when they install energy-efficient equipment, such as electrifying their heating and cooling systems and installing batteries and heat pumps.

Try our free energy comparison tool. Your business could compare, switch and save with our free energy comparison service.

3. Big changes to super payments

Meanwhile, businesses need to be on top of payroll with big changes on the way.

Gone are quarterly super payments – from 1 July 2026, they’ll have to be paid at the same time as wages. This will enable employees to track their entitlements to ensure they are being paid on time and in full.

Also, the Australian Taxation Office (ATO) will receive funding to upgrade its data capabilities and design a new compliance system, which will identify underpaid super in real time.

For help with payroll and other aspects of managing your people, have a look at My Business Workplace.

4. Reducing business admin and helping lower tax

Those drowning in paperwork should note that from 1 July 2024, small businesses will be permitted to authorise their tax agent to lodge multiple single touch payroll forms on their behalf. And from 1 July 2025, small businesses will be permitted up to four years to amend their income tax returns.

There are also measures designed to help lower the tax-related administrative burden on businesses, including an expansion of the ATO independent review process for small businesses undergoing an audit and new tax clinics to improve access to tax advice and assistance.

To help small business cash flow, the government will halve the GDP adjustment factor for PAYG and GST instalments to 6% for the 2023–24 income year, a reduction from 12%.

Also, if you’re behind in your tax, now’s the time to catch up. The government is proposing a lodgement penalty amnesty program for businesses with a turnover of less than $10 million. This applies to statements lodged from 1 June 2023 to 31 December 2023 that were originally due from 1 December 2019 to 29 February 2022.

5. Support for your employees

Employees are the lifeblood of any small business, and measures to help them manage living costs will come as welcome news.

The government will extend eligibility for the single parenting payment to support single principal carers with a youngest child under 14 years of age. At the moment, it’s eight years.

The government will also introduce a number of housing measures to increase support for social and affordable housing across the country and improve access for home buyers.

For those employing parents, it’s worth noting that the government has pledged $55.31 billion over four years to make childcare more affordable – these changes will be in force from July.

There’s also help for your people to upskill, including 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors.

The government will provide $5.5 million in 2023–24 to continue supporting negotiations on a long-term skills funding agreement with the states and territories. Subject to the outcome of these negotiations, they’ve kept $3.7 billion up their sleeve for a five-year National Skills Agreement that will commence on 1 January 2024.

6. SME cyber protections and AI

With cyber attacks a growing threat to small businesses, the government will launch a program to train cyber wardens . To learn more about how your business can protect itself against cyber attacks, have a look at this information on My Business.

Meanwhile, the government is giving $101.2 million over five years to support small businesses integrating artificial intelligence (AI) and quantum technologies to improve business processes and increase trade competitiveness.

7. Funding for growth

And finally, for those with an innovative idea to develop, take note of the government’s new support for SMEs and start-ups trying to commercialise their ideas and grow their operations.

The government will provide $431.9 million over four years, including an Industry Growth Program and continuation of the Single Business Service, which supports SMEs in engagement with all levels of government.

Need help?

If you need any help or support on these or other aspects of running your business, have a look at the resources on My Business Workplace – our easy and affordable online platform.