Businesses urged to consult with their accountant to maximise budget announcements

Businesses in Australia are set to make significant gains under the 2022 Federal Budget, Coco Hou, CPA has said. Some of the key points of delivery for the budget included the small business skills and training boost, the small business technology investment boost and $25.2 million set aside to support small businesses. 

Hou is the managing director of Platinum Professional Training and Platinum Accounting Australia. Targeting both small and medium businesses, Platinum Accounting provides businesses with the right advice for businesses to start or grow. More than just accountants who crunch numbers, Platinum Accounting places emphasis on professional analysis and planning to build committed partnerships with its clients.

“Now that the budget has been announced, it is a good time for small businesses to be setting up appointments with their accountants in order to get the best financial advice on how to maximise their gains and make the most of these budget announcements,” Hou said.

“Your accountant will help you in assessing, planning and decision making. Businesses need to know their full financial position including tax position in order to maximise their ability to benefit from all the budget initiatives.”

Small business skills and training boost

Under the new budget, businesses with an aggregated turnover of up to $50 million will be able to deduct an additional 20 percent of expenditure incurred on external training courses provided to their employees. Hou explained that this was to help businesses train new staff as well as upskill existing employees.

“Until June 2024, small businesses will be able to claim a bonus 20 percent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia,” Hou explained.

“In addition to this, there will also be $2.8 billion in funding for an overhauled apprenticeship incentive scheme to grow the number of qualified tradespeople by subsidising the wages of select apprentices and trainees.”

Small business technology investment boost

“Another huge win for the small businesses sector is the government’s scheme to invest in digitisation and technology so that small businesses can get ahead with digital transformation. The new measures will give them a leg up in spending on things like cybersecurity or moving towards cloud-based computing services, electronic invoicing and web design,” Hou added.

“Businesses with an aggregated turnover of up to $50 million will be able to deduct an additional 20 percent of expenditure, capped at $100,000, incurred on business expenses and depreciating assets that support digital adoption.”

Other measures

The Australian government has committed $25.2 million over three years to support small business, of which $18.4 million is allocated to 2022-2023. This will be used in a variety of settings such as:

• Enhancing and redesigning the Payment Times Reporting Portal and Register to improve efficiency and reporting,
• A new Access for Small Business Owners program delivered by Beyond Blue to continue to provide free, accessible, and tailored mental health support to small business owners; and
• Extending the Small Business Debt Helpline program to provide financial counselling to small businesses facing financial issues.

Moving small businesses forward

“Small businesses and family-owned businesses are at the heart of the Australian economy. Over eight million Australians are employed in small businesses so it’s great news that this year’s federal budget has given them some measures to make the most of this period of economic recovery after the pandemic,” Hou added.

“I believe that these measures will help these businesses to increase their productivity and boost their competitive edge. Having a good accountant on your side will help you make the best-informed financial decisions for your business, so that you can gain the most benefit from the budget. It has been a hard two years for small businesses so it’s essential that you work with your accountant to future-proof your business.”