Small Business Support, Manufacturing | Liverpool City Champion


Small businesses are getting more than $1.5 billion in tax breaks to go digital and train workers, but some say the budget misses big challenges facing the economy.

“Small, family businesses are at the heart of our economy and local communities – they employ almost eight million Australians,” Treasurer Josh Frydenberg said on Tuesday.

Starting now, for every $100 a small business spends on training, it will receive a $120 tax deduction – capped at $100,000 per year and costing taxpayers $550 million.

Spending on cloud computing, e-invoicing, cybersecurity and web design also qualify for the tax deduction, for costs incurred from budget night, providing an additional $1 billion in tax relief. of dollars.

Business Council CEO Jennifer Westacott said the Small Business Investment Allowance will help give them the tools and incentives they need to support the recovery.

“These measures recognize that small businesses have borne the brunt of COVID,” she said.

But the CEO of the Council of Small Business Organizations Australia, Alexi Boyd, said the budget did not address the number one problem for small businesses – labor shortages.

Manufacturing companies have been targeted for federal support during a time of heightened global uncertainty.

More than $1 billion in new spending includes $200 for the regional accelerator program, in addition to an initial $1.5 billion already committed to modern manufacturing.

Some $750 million will attract private sector investment in major projects, while $53.9 million will help small and medium-sized manufacturers adopt new technologies, grow and potentially compete overseas.

There is $4.7 million to help women pursue careers in Australian manufacturing.

Some $38.6 million will also encourage more women to start and complete apprenticeships in male-dominated trades like plumbing and masonry.

Australian Chamber of Commerce and Industry CEO Andrew McKellar said the budget fell short of some challenges facing the economy, including a sweeping program for tax reform, rebuilding businesses, supply chain capacity and productivity.

“Presumably those will have to wait until next year,” he said.

Providing $1.85 billion in cash flow support, the so-called GDP increase rate that applies to income tax and GST installments will be reduced to 2% for the income year 2022/23.

This will result in reduced installment payments for 2.3 million small and medium-sized businesses, sole traders and others who use the installment amount method.

Other measures include $10.4 million to revise the payment time reporting portal and register to make it easier to identify Australia’s largest organizations paying their bills on time.

Some $8 million is going to Australia’s Small Business and Family Business Ombudsman so businesses can access more advice.

Mental health support is also getting a boost with $4.6 million to expand Beyond Blue’s NewAccess for Small Business Owners program.

Australia’s Small Business Debt Helpline is getting $2.1 million to help more small business owners get financial advice.

But the ability to instantly write off assets will end on June 30, 2023, despite calls for it to continue.

Australian Associated Press


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