Budget tax breaks for Australian small businesses investing in estimating software

The 2022-23 Budget delivered last night by Treasurer Josh Frydenberg is a win for Australian small businesses like residential builders and subcontractors.

The Morrison Government is delivering $1.6 billion in tax relief to support small businesses to go digital and upskill their employees.

It’s never been a better time to invest in cloud-based construction estimating software, like Dindo, to help simplify your estimating, quote on more jobs and win more work.

We have summarised some of the Budget measures below:

Technology Investment Boost

The Government’s Technology Investment Boost reduces the cost of going digital, supporting businesses to invest more in their digital capability. This measure will provide tax relief of $1 billion.

More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim a bonus 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year.

“Every hundred dollars these small businesses spend on digital technologies — like cloud computing, e-invoicing, cyber security and web design — will see them get a $120 tax deduction,” Treasurer Josh Frydenberg said in his Budget speech.

Eligible expenditure includes subscriptions to cloud-based services, like Dindo Estimating.

You can head over here to review our affordable solutions.

The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

Skills and Training Boost

The Government’s Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. This measure will provide tax relief of $550 million.

Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

This boost will apply to eligible expenditure incurred from Budget night until 30 June 2024.

Making it easier to do business

The Morrison Government is continuing to support small businesses by making it easier to do business. This includes:

• $10.4 million to enhance and redesign the Payment Times Reporting Portal and Register, making it easier to view the payment practices of Australia’s largest organisations.
• $5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier for them to meet workplace obligations.
• $8 million to the Australian Small Business and Family Enterprise Ombudsman making it easier to access expert advice.
• $4.6 million to extend Beyond Blue’s NewAccess for Small Business Owners program, making it easier to access mental health support.
• $2.1 million for Financial Counselling Australia’s Small Business Debt Helpline making it easier for small business owners to receive financial advice.

Cash flow support

The GDP uplift rate that applies to PAYG income tax and GST instalments will be reduced to 2 per cent for the 2022-23 income year.

This will mean lower tax instalments, delivering $1.85 billion in cash flow support for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.

The Government continues to back small businesses to grow and create jobs as part of our plan for a stronger future.

What next?

For more information on Federal Government-announced tax breaks and refinements to the tax system to assist small businesses as part of the 2022-23 Federal Budget, visit https://www.smallbusiness.nsw.gov.au/news/2022-23-federal-budget-measures-small-business

For more information on how Dindo can help your business improve its estimating, head to https://www.dindo.co/contact-us to get in touch with us today.

General Advice Disclaimer

The information provided in this blog article does not constitute financial or other professional advice and is general in nature. It does not take into account your specific circumstances. Before acting on any information you’ve read, you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. We strongly recommend seeking independent financial advice for your accounting and taxation purposes.