Budget: SMEs get boost with $20K asset write-off, energy relief

The Australian government has announced a comprehensive program to support households and small businesses affected by rising energy prices. The program is comprised of several initiatives, each aimed at addressing a specific aspect of the issue.



At the core of the support program is the Energy Price Relief Plan, which aims to shield households and small businesses from the worst effects of rising energy prices. The plan is expected to be a significant relief for many Australians who are struggling to manage their energy costs.



The government is also establishing the Energy Bill Relief Fund in partnership with the states and territories. This program will provide up to $3 billion in electricity bill relief to eligible small businesses and households, empowering them to manage their energy costs, improve their operations, and enhance their competitiveness in the market.



In addition, the government is introducing the Small Business Energy Incentive, which is a bonus tax deduction aimed at assisting small- and medium-sized businesses in reducing their energy bills, upgrading their facilities, and saving energy. The government hopes this will help up to 3.8 million businesses.



The government is also temporarily increasing the instant asset write-off asset threshold to $20,000 for businesses with a turnover of up to $10 million for one year. This measure is expected to stimulate growth by facilitating the acquisition of new assets by small businesses.



Moreover, the budget also includes measures to simplify tax reporting and reduce the time spent on tax-related tasks for small businesses. These measures include extending businesses’ time to amend tax returns, trialling an independent review process for small businesses in dispute with the ATO, and expanding access to tax advice through the tax clinic program.



To safeguard small businesses against cyber threats, the budget introduced a $23.4 million initiative. This initiative aims to help small businesses train in-house cyber wardens and build their capacity to protect themselves against the growing number of cyber threats they face.



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