MYOB is an Australian multinational corporation that provides software in accounting, tax and other business services to small and medium businesses. According to the recent poll from MYOB, published on 28-03-2022, a day before the Federal Budget, Australians overwhelmingly agreed that support for small businesses is critical for the country's ongoing economic prosperity. According to this survey from leading business management company MYOB, 90% of Australians have voted that supporting small businesses will aid Australia's economic prosperity, which should be prioritised in the 2022-23 Federal Budget.
The poll of more than 1,000 Australians commissioned by MYOB found that 32% believed this year's Federal Budget would benefit Australia's small and medium enterprises (SMEs), and 94% stated the Government should do more to support SMEs than a more significant business. In contrast, 84% said the economy still needs government support to help recover from the pandemic. All these respondents sincerely believed in the importance of allocating more funds to develop and benefit small businesses in Australia.
On the 29th of March 2022, when the Government's 2022-23 Federal Budget was released, it introduced several new investment measures for businesses and individuals to benefit from and more features significant in supporting business owners and individuals. This article has all you need to know about what you can claim for your business.
It is said that the Government is committed to supporting small businesses so they can pay attention to doing what they do best — running their businesses, growing their businesses, and creating jobs for Australians.
Tailored support for small businesses
Technology and employee training investment boost
Small businesses will be affected by the 2022 Federal Budget when they take up digital technology and invest in training for applicants to step into the digital economy and industry. The Federal Government will be providing $10.7 million for a digital skill cadetship trial. Small businesses are set to benefit at tax time, with new measures laid out in the Budget to boost investment in digital.
PAYG tax model changes
The changes in the pay-as-you-go (PAYG) tax model are initiated to help small business owners and sole traders and free up the cash flow that will allow them to invest in other avenues of their business. One change is that the businesses will only pay a 2% uplift rate instead of a 10% uplift rate, allowing them to keep more cash.
"Our small business and sole trader package will deliver more than $800 million in compliance savings every year, allowing SMEs to do what they do best — invest, innovate and drive job growth," Treasurer Josh Frydenberg said in a statement.
For businesses looking to increase their cash flow and recover from the stressful pandemic, the changes to the PAYG model could be helpful.
Reducing the red tape
Even though the red tape might not have been mentioned in the Treasurer's speech on Budget, the Coalition has also announced plans to help small and medium businesses acquire government contracts.
Currently, companies are required to have insurance if they are to be successful in their bid for a government tender/contract, but these changes would eliminate that requirement.
Fuel excise cuts and cost of living package
The fuel prices increase added to the cost of living pressures families face and the cost of doing business for small businesses nationwide. The Government is looking to reduce the fuel excise by 50% for six months. This means that the excise on fuel is reduced from 44.2 cents per litre to 22.1 cents per litre.
As the cost of living rises, the Government has made calls to extend the low and middle-income tax offset (LMITO) for another year. Over 10 million individuals will be receiving a one-off $420 cost of living tax offset starting the 1st of July this year. Also, to help Australians meet the cost of living pressures, the Government will provide a one off, income tax-exempt payment of $250. These tax offsets would help relieve households and individuals of the rising cost-of-living tensions.
Natural disaster funding, Covid protection and winter plan
The Government is supporting families, farms and businesses affected by recent floods. The Winter Response Plan outlines another $6 billion of funds towards mitigating COVID-19 and influenza spike and other respiratory diseases. Small businesses looking for relief from COVID for reopening and economic recovery will benefit from these plans.
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If you would like assistance with implementing these budget measures for your business, contact our team of experienced finance advisers.
