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Federal Budget 2022-23

Here are a few some key announcements from last nights Budget.

This Budget will see unemployment go even lower, delivering more jobs and higher wages.”

We’ve seen some big announcements when it comes to digital tax incentives and skills, but there are a number of other pieces of good news for business in tonight’s Budget.

7 measures business owners should know:

  1. Fuel excise halved for six months
  2. Cost of living pressures addressed
  3. Regional communications are on the agenda
  4. Reporting to the ATO is becoming more streamlined
  5. PAYG will be modernised by 2024
  6. Some COVID grants become non-assessable, non-exempt to 30 June 2022
  7. Childcare and mental health gain targeted spending

As expected in the lead up to a Federal Election, tonight’s announcements featured a little bit of something for just about everyone, including the much-discussed prospect of a one-off cash handout of $250 to those on the pension, as well as the expansion of the low-to-middle income tax offset.

But when it comes to business owners and operators, here are the main items you’ll want to be aware of.

 1. Temporary halving of fuel excise to fight rising costs

 The Government has confirmed the petrol and diesel excise will be slashed by half for six months,

“For the next six months, Australians will save 22 cents a litre every time they fill up their car,” Frydenberg announced.

“A family with two cars who fill up once a week could save around $30 a week or around $700 over the next six months.”

The cut to the fuel excise takes effect tonight and is expected to begin impacting the cost of petrol in the next fortnight, without impacting costs to funding and maintaining roads.

2. Further encouragement of consumer spending

A number of initiatives have been announced to reduce the cost of living pressures, which will in turn have

an impact on consumers’ spending ability – likely to be welcome news for businesses of all sizes.

These include

  • $420 one-off tax offset for over 10 million low-and-middle income earners
  • Expansion of the low and middle income tax offset of $1500 for singles and $3000 for couples from 1 July 2022
  • $250 ‘Cost of Living Payment’ to be delivered within weeks to six million ‘pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders’

“Together, with existing indexation arrangements, this will see a single pensioner receive more than $500 in additional support over the next six months, just when they need it most,” the Treasurer said.

3. $1.3 billion for regional communications

The government is spending $480 million on the National Broadband Network in what is likely to spell great news for regional investment, as well as the delivery of products and services online.

Up to one million households and businesses in regional, rural and remote Australia will have access to higher speeds on NBN fixed wireless services or greater data limits on Sky Muster services.

The measure comes as part of the Treasurer’s announcement to deliver “a new $1.3 billion telecommunications package to expand mobile coverage across 8,000 kilometres of regional transport routes.”

The package also includes $811.8 million over five years to expand mobile coverage, connectivity, resilience and affordability in regional Australia.

There’s also a review into mobile tower access fees that will cost $1.8 million to deliver.

4. Smarter reporting for TPAR, trust incomes

The Taxable Payments Reporting System looks set for an overhaul and businesses will now have the option to report it via their accounting software on the same lodgement cycle as their Business Activity Statements.

While the Government says systems will be in place to support this by 31 December 2023 and will commence on 1 January 2024, MYOB systems are already prepared to make this change, which aims to increase the accuracy and timeliness of reporting while lowering the compliance cost to businesses.

Similarly, the digitisation of trust and beneficiary income reporting and processing has also been announced, allowing all trust tax return filers the option to lodge income tax returns electronically, so increasing pre-filling of data and assisting the automation of ATO assurance.

5. Modernisation of PAYG instalment systems

Companies that choose to have Pay As You Go (PAYG) instalments calculated on current financial performance will be able to have the information extracted from their accounting software with some tax adjustments.

The move provides incentive for small business to digitise their accounting to reduce set PAYG tax for reduced business performance each BAS quarter.

While the Government is still to consult with impacted stakeholders, including tax practitioners and digital service providers such as MYOB, the intention is to have this measure take effect by 1 January 2024.

6. COVID business grants to become non-assessable, non-exempt

This announcement will enable payments from certain State and Territory business support programs to be made non-assessable and non-exempt for income tax purposes until 30 June this year.

Eligibility is limited to grant programs directed at businesses impacted directly by public health directives and were significantly disrupted as a result, and includes the following:

  • NSW Accommodation Support Grant, Commercial
    Landlord Hardship Grant, Performing Arts Relaunch Package, Festival
    Relaunch Package, 2022 Small Business Supports Program
  • QLD COVID-19 2021 Business Support Grant
  • SA COVID-19 Tourism and Hospitality Support
    Grant, and COVID-19 Business Hardship Grant


7. Childcare and mental health investment

The Government announced $19.4 million in spending over the next five years to support the establishment of new childcare services in rural, remote and regional areas where there is limited supply of existing childcare services.

A critical factor for any employer of parents, childcare funding is seen as absolutely critical for the availability of workers and in this sense, every little bit helps. However, we can expect business owners are probably looking for more funding in this direction.

Another key issue for worker support mental health spending includes specific measures to support mental
health for adults and children in flood affected regions.

This is an important recognition of the recent challenges faced by Australians, and it is something that we know impacts both small and large businesses, their managers and their operations.

NSW Business Support Package

The NSW Government announced a $1bn business support package including:

  • Up to $5k per week for Feb 2022 – A lump sum payment of 20% of weekly payroll, up to a maximum of $5,000 per week for the month of February 2022 for eligible businesses(non-employing businesses receive $500 per week).

To access the package, businesses must:

    • Have an aggregated annual turnover between $75,000 and $50 million(inclusive) for the year ended 30 June 2021; and
    • Experienced a decline in turnover of at least 40% due to Public Health Orders or the impact of COVID-19 during the month of January 2022 compared to January 2021 or January 2020; and
    • Experienced a decline in turnover of 40% or more from 1 to 14 February 2022 compared to the same fortnight in either 2021 or 2020 (using the same comparison year utilised in the decline in turnover test for January);
    • Maintain their employee headcount from “the date of the announcement of the scheme” (30 January 2022).
  • Other grants available;

Special Disaster Grants – NSW Severe Weather & Flooding November 2021

The NSW and Australian Governments have announced additional assistance measures to support primary producers who have been impacted by the floods and severe weather that occurred during November and December 2021.

Assistance is now being provided to 57 local government areas in NSW through the jointly funded Commonwealth-State Disaster Recovery Funding Arrangements (DRFA). Primary producers recovering from the devastating impacts of floods are receiving vital support, with Special Disaster Grants of up to $50,000 now available.

Flood affected primary producers are encouraged to apply for Special Disaster Grants to access financial assistance to get back operating as soon as possible.

Once approved, eligible primary producers can access $10,000 in assistance up-front, with a further $40,000 in financial assistance available thereafter upon submission of valid tax invoices.

NSW Small Business Fees and Charges Rebate

Have you heard of the NSW Small Business Fees and Charges Rebate? If you’re a sole trader, the owner of a small business or a not-for-profit organisation in NSW, you may be eligible for this rebate, available until 30 June 2022. There are numerous costs you can claim for your business: read on for more information.

All About the Rebate

The NSW Small Business Fees and Charges Rebate is aimed at supporting small businesses by reducing the cost of running a business during the COVID-19 period. Notably, eligible businesses or not-for-profits only need to apply for the rebate once, but can submit multiple claims until the full value of $1,500 (soon announced to be $2,000) is reached.

Funds can be used to offset the costs of eligible NSW and local government fees and charges due and paid from 1 March 2021. These include, but are not limited to:

  • food authority licences
  • liquor licences
  • tradesperson licences
  • event fees
  • registration fees for motor vehicles
  • council rates.

A full list is available on the Service NSW website.

Who is Eligible?

To be eligible for this rebate, small businesses (including non-employing sole traders) and not-for-profit organisations must:

  • have total Australian wages below the NSW Government 2020-21 payroll tax threshold of $1.2 million
  • have an Australian Business Number (ABN) registered in NSW and/or have business premises physically located and operating in NSW

How Do I Apply?

To apply for the rebate, you’ll need:

  • a MyServiceNSW Account
  • your proof of identity
  • your valid ABN/ACN
  • your business banking details for payment.

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