Supporting small business

Easing immediate pressures and boosting resilience

Energy Price Relief Plan

The Government is helping small businesses manage high energy prices through its Energy Price Relief Plan, which is shielding small businesses from short-term high energy prices by intervening to limit Australia's exposure to international energy price shocks and providing around 1 million small businesses with direct bill relief.

Small Business Energy Incentive

The Government is introducing a new tax break - the Small Business Energy Incentive - to help small and medium businesses electrify and save on their energy bills. This incentive will provide $310 million in tax relief and support up to 3.8 million businesses make investments like electrifying their heating and cooling systems, installing batteries and upgrading to high-efficiency electrical goods.

Businesses with an annual turnover of less than $50 million will have access to a bonus 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.

This is in addition to $62.6 million towards energy efficiency grants for small and medium enterprises in the October Budget.

Small business instant asset write-off

The Government is making it easier for small businesses to invest and grow by providing $290 million in cash flow support through the $20,000 instant asset write-off.

Improving small business cash flow

The Government is providing approximately 2.1 million eligible small businesses with cashflow relief by halving the increase in their quarterly tax instalments for GST and income tax in 2023–24. Instalments will only increase by 6 per cent instead of 12 per cent, which better reflects the economic conditions currently faced by the sector. It strikes a balance between improving cashflow for small businesses and managing income tax and GST liabilities.

Cyber security

The Government is investing $23.4 million to help small businesses build their resilience to cyber security attacks by training in-house cyber wardens. Small businesses have rapidly digitalised in the past few years, bringing new opportunities but also increasing their vulnerability to cyber-attacks. A cybercrime attack on a small business can cause significant financial and reputational damage, putting at risk the viability of the business and the jobs it provides in the community. This measure will help mitigate and reduce the harms associated with cyber-attacks on small business. The small business Cyber Wardens program will be delivered by the Council of Small Business Organisations Australia.

Industry Growth Program

With small businesses employing over 5 million people, the Government recognises their importance to Australia’s economy. Access to finance is important for supporting small business innovation. A new $392.4 million Industry Growth Program will help support small to medium-sized businesses and startups develop new products and services to grow their operations.

Buy Australian Plan

The Buy Australian Plan is a comprehensive program that will improve our approach to Government procurement and use the Government’s buying power to help industry grow by competing for and winning more government contracts, provide more diversity in our supply chains, and invite innovation. The Budget builds on the creation of the Future Made in Australia Office by providing $18.1 million to increase engagement with businesses, improve AusTender and procurement capability across the Australian Public Service.