5 Ways SMEs Can Take Advantage of the New Federal Budget

The 2023-24 federal budget has announced several new incentives that small and medium enterprises (SMEs) can take advantage of. Primarily, the new budget will help small businesses invest more in their employees and their futures through technology and tax write-offs.

Find out how this year’s budget can positively impact your business below.

1. Save on Energy Bills

The Australian Government has introduced new tax deductions for small businesses to save on energy and electricity bills. This includes several aspects, including the potential to upgrade your business’s energy efficiency with new investments. For example, you can:

  • Electrify your heating and cooling systems
  • Install batteries and heat pumps
  • Upgrade to more efficient appliances like fridges and induction hobs


Notably, there is a limit of $100,000 on expenditures and $20,000 on tax deductions per business. The amount you can save depends on how you spend, with more energy-efficient products decreasing the cost of your bills over the long term. 

Additionally, the Australian Government is collaborating with state governments to deliver a $3 billion electricity relief bill, but the impact this has on your business will vary depending on where you are based.

2. Instant Asset Write-Offs

The Government is also extending the instant asset write-off threshold to 30 June 2024, with an increase in eligibility for expenses up to $20,000. An instant asset write-off refers to the ability to deduct the full cost of qualifying depreciating assets from your tax bill.

Small businesses with an aggregated turnover of less than $10 million can deduct the full cost of eligible assets that are installed and ready for use between 1 July 2023 and 30 June 2024.

With the ability to write off these expensive assets instantly, your business can free up more cash to invest elsewhere. Instant asset write-offs were introduced in last year’s budget, and many small businesses expected it to be removed this year. 

However, its existence has been extended. It’s unlikely that this extension will stick around forever, though, so it’s worth investing in assets and writing them off while you can.

Take advantage of it while you can, and make any investments in the 2023/24 financial year.

3. Making Tax Easier

There are plenty of ways the Australian Government is aiming to help small businesses with tax season. First of all, accountants will be able to file multiple Single Touch Payroll forms for their clients’ from 2024, freeing up more time for employers to focus on running their business.

The Australian Taxation Office (ATO) faces a lot of debt from small businesses. It has introduced an amnesty on failure-to-lodge penalties for late payments dating back to 2019 to try and protect against unpaid tax. You must have an aggregate turnover of less than $10 million to benefit.

Meanwhile, the Government will also spend $9 million over four years on tax ‘clinics’ where small business owners can go to get accessible tax advice. Plus, with $12.8 million pledged to an independent review system, medium-sized enterprises will have more opportunities to plead their case regarding tax.

When it’s easier and more rewarding to pay tax, more Australian business owners will engage with the tax system. The idea is to gently nudge small business owners in the right direction, but this is not to say that there will not be repercussions for those who still don’t pay their taxes.

Businesses flouting these relaxed rules can expect repercussions. The ATO is receiving $588 million over four years to boost GST compliance, with a more sophisticated system to locate and track down non-compliant businesses. If you purposefully file your GST returns incorrectly, beware.

4. Support for Cyber Security

Small businesses in Australia report a cyber crime incident every 10 minutes. As cyber security troubles increasingly threaten small businesses, the Government has also introduced a program worth $23.4 million to help them train in-house cyber wardens. 

The Cyber Wardens program is designed to build a cyber-smart workforce to educate your team about potential threats. According to the official website, having a trained Cyber Warden could save your small business up to $50,000.

The program was launched by the Council of Small Business Organisations Australia (COSBOA). COSBOA has attained government support on this initiative after months of attempting to reach an agreement, so it could be a great opportunity for your business to finally take steps toward savvy cyber security. 

There are, of course, plenty of other ways to protect your small business. Take B2Bpay, for example, which includes secure financial transactions that can protect the data of both you and your customers. Taking these steps sooner rather than later is the best way to protect your business.

What’s more, small businesses with an annual turnover of below $50 million will be eligible for a 20% deduction for the cost of expenses and depreciating assets with digital uptake. This deduction is available from 1 July 2023 until 30 June 2024, and applies to ecommerce platforms, cyber security systems, and online payment providers like B2Bpay.

5. Boosting Apprenticeships and Training

The new budget provides substantial financial backing for apprenticeships, namely in the form of $54.3 million over five years. Hiring apprentices can help your small business’s future by training skilled employees while reducing the cost of recruitment. By participating in the Government scheme, you can set your business up for the future.

The idea is to provide a “new non-financial support model” that will “redesign and refocus key support services.” Not only is this meant to increase the number of apprentices, but also to improve apprenticeship completion rates.

Furthermore, the initiative aims to improve diversity in the apprenticeship scheme, with particular reference to the gender gap. The Government is granting $5 million to organisations devoted to diversity, specifically aiming to address the gender gap in the VET sector, where women are less likely to enter historically male-dominated fields like the electrical trade.

Part of the program includes educating, advising, and supporting small businesses as they make their organisations more inclusive, reduce the barriers to women’s participation, and make attempts to retain female workers. Taking advantage of this program can help you make strides towards a more equitable workplace with diverse outlooks, which can have several benefits including increased productivity, increased creativity, and better marketing opportunities.

How B2Bpay Can Help Your Small Business Flourish

The new federal budget opens up a world of opportunities for SMEs to enhance their operations and drive growth. These initiatives provide small businesses with the means to boost efficiency, improve cash flow, and protect their finances.

Nevertheless, managing finances effectively can still be a challenging task, and that’s where B2Bpay comes in. B2Bpay offers a comprehensive solution that enables SMEs to streamline their financial processes in one convenient online payment portal. You can make and receive payments securely, ensuring that all your financial transactions are handled smoothly.

By integrating B2Bpay with popular accounting software like MYOB and QuickBooks, you can also consolidate all your financial information in a single place. This centralised approach allows for better organisation and easier finance tracking, so when tax season arrives and it’s time to make those write offs, everything is all in one payment portal. You can even earn Qantas Points as you pay your taxes.

Try B2Bpay today to see how it can revolutionise your finances.

This content above was put together for information purposes only. The Content does not constitute tax and/or legal advice and should not be relied upon as such. You should seek tax, legal or other professional advice before acting or relying on any content.


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