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The federal government has announced further support for small businesses through the passing of a new bill.
The Albanese government has announced the passing of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (the Bill) on 25 June 2024.
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The Bill was announced during last year’s budget and aims to ease pressure on small- to medium-sized enterprises (SMEs) and boost their resilience.
The passing of the Bill will see the federal government implement a $20,000 instant asset write-off for assets first used or installed ready for use between 1 July 2023 and 30 June 2024 and will apply on a per asset basis, allowing SMEs to write off multiple assets.
According to the government, this will enhance cash flow while reducing compliance costs for small businesses with turnover of up to $10 million.
Additionally, the Bill will implement the Small Business Energy Incentive, which was a 2023–24 budget measure aimed at helping SMEs save on energy bills.
This is set to help SMEs with turnover of up to $50 million pay for upgrades to heating and cooling systems, battery installations, and switch to energy-saving electrical goods.
Assistant Treasurer and Minister for Financial Services Stephen Jones MP said: “The Albanese Government wants people to earn more and keep more of what they earn.
“We know that small businesses are the lifeblood of our economy and our communities, and our Budget invests in the security and certainty they need to thrive.
“Our plan will help small businesses electrify their heating and cooling systems, and upgrade to more efficient appliances, while saving money on their energy bills.”
Furthermore, the 2024–25 budget built on these introduced measures through the Small Business Statement outlined more than $640 million for SMEs to ease pressures, help with growth, and “level the playing field”.
This year’s budget included a further targeted 12 months of the $20,000 instant asset write-off and an additional $3.5 billion of energy bill relief to households and small businesses through the Energy Bill Relief Fund.
The Commonwealth will deliver rebates of $325 to approximately 1 million SMEs from 1 July 2024.
Minister for Small Business and Housing Julie Collins MP said: “The Albanese Labor Government is committed to delivering a better deal for small business and recognises the sector is the engine room of the Australian economy.
“We’re focused on delivering responsible, practical assistance to small businesses so they can continue to invest and grow. The passage of legislation delivers on this.”
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