Small and family businesses are the backbone of our economy and the key to Australia’s economic recovery.
To protect jobs and our economy, small business has been a primary focus for our Government during the pandemic.
This included support through JobKeeper, Cashflow Boost payments, 50% wage subsidies for apprentices and the HomeBuilder program.
Our economic policies are working with 367,500 more Australians in work now than pre-COVID.
The Morrison Government will continue to support small business and encourage jobs.
SMALL BUSINESS TAX RELIEF
The 2022 Budget provides new support for small businesses to upskill employees and embrace the digital revolution.
Businesses with a turnover of less than $50 million can now access:
- A 20% bonus tax deduction on the costs of external training for employees.
- A 20% bonus tax deduction on investing in new technology (up to $100,000 per year) – like cloud computing, eInvoicing, cyber security and web design.
These new measures build on existing tax relief for small businesses.
The corporate tax rate for businesses with a turnover less than $50 million is now at 25% – the lowest rate in 50 years.
For unincorporated businesses with a turnover less than $5 million, the tax offset has increased to 16% (capped at $1,000) – ensuring sole traders also benefit.
The Morrison Government’s small business tax relief is supporting 3.6 million small businesses, employing almost 8 million Australians.
HELPING SMALL BUSINESS CREATE JOBS
The Morrison Government is supporting small businesses that are investing in skills.
A record 220,000 Australians are now in trade apprenticeships – the highest level since records began in 1963.
To boost skilled workers now and for the future, we are investing a further $2.8 billion in the 2022 Budget to support Australian apprenticeships.
New apprentices will receive $5,000 payments and businesses who take them on will receive up to $15,000 in wage subsidies.
We are laying the foundations for skills reform investing $3.7 billion to support an additional 800,000 training places.
EXPANDED INSTANT ASSET WRITE OFF
Over 99% of businesses employing 11 million workers can write off the full value of eligible assets purchased to 30 June 2023.
The expanded Instant Asset Write Off means a tradie can buy a new ute, a farmer a new harvester and a manufacturer expand their production line.
When large businesses invest in assets, it also provides further opportunities for small businesses to sell, deliver, install and maintain these assets.
RED TAPE RELIEF
The Coalition Government’s deregulation reforms are expected to generate benefits exceeding $21 billion over 10 years – cutting red tape for businesses, individuals and community groups.
We have simplified Business Activity Statements, implemented Single Touch Payroll and will automate ATO reporting requirements – reducing compliance costs, improving processing times and supporting cash flow.
We have made it easier for businesses to employ their first worker with the online Hiring Employees Checklist and Employment Contract Tool that guides employers through a series of questions to generate an employment contract in five minutes.
A dedicated small business unit in the Fair Work Commission will help small businesses navigate their workplace obligations.
HELPING CASH FLOW
The Coalition Government is lowering the GDP uplift rate that applies to pay-as-you-go (PAYG) instalments and GST instalments from 10% down to 2%.
This delivers a $1.85 billion cash flow boost to more than 2.3 million taxpayers, including small businesses.
Since 1 January 2020, the Government has been paying its bills within 20 days – and e-invoices within 5 days – for contracts up to $1 million.
The Payment Times Reporting Register is ensuring small businesses get paid on time.
SUPPORTING SMALL BUILDERS
Supported by initiatives like HomeBuilder, in March 2021 housing starts increased to be at their highest level in 20 years.
The Morrison Government is further encouraging home ownership by expanding:
- the First Home Super Saver Scheme;
- the First Home Buyer Deposit Scheme (helping first home buyers build a home with a 5% deposit); and
- the Family Home Guarantee (helping single parents purchase a home with a 2% deposit).
Construction businesses are also being supported by our 10 year infrastructure pipeline, which is already supporting around 120,000 jobs – and will support a further 40,000 jobs.
MORE EXPORT OPPORTUNITIES
More exports means more Australian jobs.
We’re providing more opportunities for exporters through free trade agreements with the United Kingdom, India, Japan, Korea, China, Hong Kong, Indonesia and Peru, the 11 nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Pacific Agreement on Closer Economic Relations (between Australia, New Zealand and seven Pacific countries).
SUPPORT DURING THE PANDEMIC
In response to this crisis, the Morrison Government committed unprecedented support for small businesses.
Over 1 million businesses and 4 million workers were supported byJobKeeper – the largest economic support program in Australia’s history.
Small businesses and their employees have also been supported through:
- Cashflow Boost payments, which have provided $35 billion, helping over 800,000 small and medium businesses to stay afloat.
- A 50% wage subsidy, supporting up to 270,000 apprentices and trainees.
- The HomeBuilder program, supporting the residential construction industry.
Small businesses are also supported by measures designed to boost economic activity, including tax relief for workers and support payments for individuals during the pandemic.
Targeted support was provided for aviation, tourism, the arts and international education providers.
Information current as at April 2022