The top 3 benefits from the 2023-24 Federal budget

Small businesses are set to receive extensive support from the government, positioning them as "winners" in the recent 2023-24 Federal budget. The budget includes measures to encourage investment in assets and renewable energy, as well as to provide cash flow assistance. With this in mind, we have outlined three key benefits that small business owners can expect from this year's Federal budget.

1. Tax deductions for assets and equipment

A refreshed Instant Asset Write-Off (IAWO) scheme has been launched to replace the Temporary Full Expensing (TFE) initiative, which is scheduled to end this financial year. Under the new IAWO scheme, businesses with an annual turnover of less than $10 million can immediately deduct the full cost of eligible assets. This applies to assets that are installed or first used between 1 July 2023 and 30 June 2024, with a write-off maximum of $20,000 per asset.

Something to consider: As the updated IAWO will be applied on a per-asset basis, small businesses can stack the write-off against multiple assets.

2. Reduced energy costs

The Small Business Energy Incentive program encourages businesses to shift their heating and cooling systems to solar or renewable energy sources. This incentive offers an additional 20% deduction to eligible businesses on certain energy-efficient investments, with total expenditure capped at $100,000. Additionally, qualifying businesses can receive electricity bill relief of up to $650 (amount varies across Australian states and territories) starting from July 2023.

Note: To qualify for the Small Business Energy Incentive, assets or upgrades must be installed between 1 July 2023 and 30 June 2024, with certain exclusions applying.

3. Business growth and funding

Small and early-stage businesses can rest assured knowing a new Industry Growth Program worth $392.4 million has been implemented. This program repurposes and expands what was previously offered through the Entrepreneurs' Programme, enabling funding to be better targeted to support SMEs. To find out more about whether your business qualifies under the Industry Growth Program, click here.

How to make the most of the benefits on offer

All of these benefits will require up front investment to acquire and install assets which can impact your business’ cashflow. This is where specialised equipment or asset finance can make all the difference. Click here to see if you qualify and view your top options through our free online loan-finder.*

*Always consult an accountant or registered tax agent to determine which policy (if any) will be advantageous for your specific financial situation and needs. Policies are subject to strict eligibility criteria, which may be modified or changed at any time.