On Tuesday 14 May, Treasurer Jim Chalmers announced the 2024-25 budget, delivering a budget surplus of $9.3 billion. Through this budget, the Government committed to improving the operating environment for small businesses through $641.4 million in targeted support for small businesses. Below are some of the key budget features for business owners. 

Instant asset write-off extended  

The Government announced as part of the 2024-25 Budget, the instant asset write-off will be extended by a further 12 months until 30 June 2025. This measure aims to improve cash flow and reduce compliance costs for small businesses.  

Under the scheme, eligible small businesses, with an aggregated annual turnover of less than $10 million, will be able to immediately deduct the full costs of eligible assets up to $20,000.  

It’s important to note: 

• Eligible assets must be used or installed ready for use between 1 July 2023 and 30 June 2025. This is particularly important to those in the process of purchasing new assets.  

• The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.  

• Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.  

Energy Bill Relief Fund 

Through the Energy Bill Relief Fund, eligible small businesses will receive an energy rebate of $325 to help cover the cost of electricity bills. Approximately one million businesses on small customer electricity plans are expected to benefit from the fund. This will also be in addition to the $400 energy bill relief announced by the Western Australian Government as part of the 2024-25 State Budget announced on 9 May 2024.  

Support for innovation and sustainability 

The introduction of the $22.7 billion Future Made in Australia package will see small businesses both help build and benefit from investments in manufacturing, clean energy and a workforce trained in new technologies.  

The budget also introduced tax incentives to promote investment in green technologies, part of the government’s broader strategy to achieve net-zero emissions.  

The Government is helping small businesses improve energy efficiency and lower emissions by investing $62.6 million through the Energy Efficiency Grants for Small and Medium Sized Enterprises program. Businesses can apply for grants of up to $25,000 to fund a range of energy upgrades, such as replacing inefficient appliances and improving heating systems.  

These investments build on existing Government commitments to support small businesses to innovate, including: 

• $392.4 million through the Industry Growth Program to help start-ups and small businesses in their most challenging development phase to innovate, commercialise their ideas and grow.  

• $18.6 million for Round 2 of the Digital Solutions program to help small businesses adopt digital tools and embrace the opportunities that going online offers.  

Building cyber resilience 

To help small businesses build their capability to protect themselves online, the Federal Government has committed to: 

• $23.4 million investment in the Cyber Wardens program, providing free online training to small business owners and their staff to help drive cultural change and a cyber safe mindset.  

• $11.1 million funding for the Small Business Cyber Resilience Service to help small businesses build their cyber resilience and provide support when affected by a cyber incident.  

• $7.2 million funding for the Cyber Health Check, an interactive tool to enable business owners to self-assess their cyber security maturity.  

Need some advice?

If you have any questions or would like to know how you can incorporate the outcomes from this year’s budget into your business and tax planning, call one of our advisors on 9321 3362.