In a bid to boost tax revenue and strengthen the economy, the government introduced several key changes back in May 2023. From cracking down on non-compliant businesses to supporting small enterprises and promoting the green energy sector. As the year progresses, here is a refresher of what you need to know.
Boosting Tax Revenue Through Compliance
The government is set to raise an additional $3.8 billion in GST revenue by extending its compliance crackdown on businesses. The ATO will receive an extra $588 million to enhance GST compliance, with the primary goal of ensuring businesses meet their tax obligations, including accurate GST accounting and refund claims.
Multinationals and Gas Companies Face Tax Changes
Multinational corporations will now be subject to a new minimum tax rate. Gas companies will face an extra $2.4 billion in taxes over five years, thanks to changes in the Petroleum Resource Rent Tax. These measures are aimed at increasing the government’s revenue and ensuring that everyone pays their fair share.
Combating Online Scams and Fraud
The government is allocating $86.5 million in funding over four years to combat online scams and fraud. This includes the creation of a National Anti-Scam Centre, resources for the corporate watchdog to identify and remove websites promoting investment scams, and the development of a system to prevent scammers from sending deceptive text messages that appear to come from reputable corporations or government agencies.
So what does this mean for your small business?
1. The new tax break allows small firms to deduct the full cost of eligible assets, with a cap of $20,000. This instant asset write-off will benefit businesses with a turnover of under $10 million, providing a boost to cash flows and reducing compliance costs.
2. maller businesses can take advantage of a 20% bonus tax deduction for investments in assets that promote electrification and energy efficiency, such as heat pumps and electric heating or cooling systems. This tax break is available for businesses with a turnover of up to $50 million.
3. Around one million small businesses are set to enjoy lower power bills due to the government’s cap on coal and gas prices, a response to last year’s energy crisis.
To find out more about how Australia’s latest budget will affect your business, contact support@walkerhill.com.au today!
