2023 Federal Budget — What’s in it for Small Businesses

This year’s budget is packed with initiatives that will provide a boost to Aussie businesses, no matter the size. From tax incentives to cyber security, there’s plenty to get excited about. So, let’s dive into the details and see how the 2023 Federal Budget will impact your business in the coming year.

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5 Ways the 2023 Federal Budget Impacts Your Business 

1. The Small Business Energy Incentive 

Under te government’s approach to supporting small and medium businesses, those who invest in energy-efficient systems, such as advanced refrigeration, alternate energy production, batteries, or thermal energy storage, can receive bonus tax deductions. This 20% bonus will apply to eligible expenses up to a limit of $100,000, resulting in potential deductions of up to $20,000.

It is important to note this incentive is only available to businesses with a turnover of less than $50 million. Although this measure was announced before the budget, it is still significant as it is a key part of the government’s strategy for aiding SMEs. 

2. Cyber Security Boost 

To combat the growing threat of cybercrime, the government has announced a $23.4 million program aimed at training in-house cyber wardens to protect small businesses against online threats. The Council of Small Business Organisations Australia will deliver the training to address vulnerabilities, and up to 15,000 small businesses are expected to participate. 



According to Australian Cyber Security Centre data, small businesses make up 5 million of the nation’s businesses. They are particularly vulnerable, as 60% of all cybercrimes in Australia are directed at small businesses, with an average annual cost of almost $9,000 per owner. 
 
With the rise of cyber attacks in the last few years, it is so important for small businesses to ensure your business has secure website hosting to further protect your online presence and sensitive information. By implementing proper cybersecurity measures and hosting websites on secure servers, every small business can reduce its risk of becoming victims of cybercrime. 

3.$20,000 Instant Tax Write-Off

Small businesses with a turnover of less than $10 million per year can take advantage of an instant tax write-off for the purchase of assets valued at up to $20,000 each, with no limit on the number of assets they can acquire. This instant write-off is applicable for assets that are first used or installed and ready for use between July 1, 2023, and June 30, 2024. 



However, it is worth noting that while the government has extended the instant asset write-off, it represents a significant reduction from the $150,000 asset value limit and $500 million turnover eligibility threshold that were initially introduced when COVID first emerged in 2020-21. 

4. Small Business Cash Flow Relief 

Roughly 2.1 million small businesses that qualify will receive cashflow relief in the form of a reduction in their quarterly tax instalments for both GST and income tax during the 2023-24 period. Instead of an increase of 12 percent, the instalments will only rise by 6 percent, which is more in line with the sector’s current economic situation. This measure strikes a balance between boosting cashflow for small businesses and managing their income tax and GST liabilities. 

5. Cheaper Child Care