The Australian Government is increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.
Small businesses, with aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024.
Help with energy costs
Small Business Energy Incentive
The Australian Government is introducing a tax break to help small businesses electrify and save on your energy bills. Businesses will be able to make investments like:
- electrifying your heating and cooling systems
- upgrading to more efficient fridges and induction cooktops
- installing batteries and heat pumps.
Businesses with annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024.
Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.
Energy Bill Relief Fund
The Australian Government is partnering with state and territory governments to deliver up to $3 billion of electricity bill relief for eligible small businesses.
From July 2023, this plan will deliver up to $650 for eligible small businesses, however the total amount of bill relief will vary across our states and territories.
Cyber security support
The Government will also fund measures to help protect small businesses against cyber threats through a $23.4 million program to help them train in-house cyber wardens. The program will be delivered by the Council of Small Business Organisations Australia.
Funding for small businesses and start-ups
A new $392.4 million Industry Growth Program will provide advice and matched funding for small to medium-sized businesses and start-ups to develop new products and services to grow their operations.