We have taken a look at the economic impacts of the mid-pandemic budget delivered last night, which highlighted the Government’s focus on keeping the economy stimulated by spending, to bring you the headlines as they relate to small business. If you are a small brewer/distiller or play in the digital games space, there are specific offsets and concessions available to you. Otherwise, there are few big-ticket tax items in this year’s budget.
Business Advisor, Cathy Faulkner summarises the impacts the recent Federal Budget announcement has on small businesses for the financial year 2022.
Instead, the application of some incentives announced in previous budgets has been extended:
The Instant Asset Write-off
These measures have been extended for 12 months until 30 June 2023.
How does it work?
Eligible businesses with aggregated annual turnover less than $5 billion can deduct the full cost of eligible depreciable assets of any value acquired and held ready for use from 6 October 2020 to 30 June 2023.
NB To claim temporary full expensing, small businesses need to apply the simplified depreciation rules.
The loss years in which an eligible company can carry back a tax loss will be extended by a year to include the 2022-23 income year.
An eligible company can carry back a tax loss for the 2002, 2021, 2022 and 2023 to offset tax paid in the 2019 or later income years. Tax refunds resulting from loss carry back will be available to companies when they lodge their 2021, 2022 and now 2023 tax returns.
Other tax related issues addressed in the budget include:
- Superannuation issues – these are addressed separately
- The further commitment to the JobTrainer fund will assist businesses who can utilise apprentices and trainees
- An independent umpire will be established to deal with disputed tax debts
For more information or if you have any questions about your personal situation, contact our office on (08) 8172 1444 or email our friendly team today!