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COSBOA welcomes the first pre-budget announcement for small business

COSBOA acknowledges this first small business initiative for the 2023-24 federal budget.

The Small Business Energy Incentive tax bonus.

We congratulate the Government for what we hope is the first of the budget measures to support small business in times of increased costs and restricted labour market. Small business strive to be efficient and are looking to the budget for encouragements to be productive and to employ more people in their businesses.

As energy costs have substantially increased, it is one of the expenses that small business are now seeking to do more to manage and control. This encouragement to invest in energy efficient initiatives will help.

When a business with less than $50m turnover spends up to $100k on eligible electrification or efficient energy expenditure during the next financial year, they get a 120% deduction.

Example: Investment in heat pumps of $10,000 provides a 120% or $12,000 tax deduction. A total tax amount saved to profitable companies of $3000, an additional $500 tax saving due to this energy incentive bonus.

We look forward to the detail and hope that the deduction is kept simple ie the full 120% tax deductibility allowed in the one tax year.

COSBOA’s pre-budget submission included a call for incentives like this to assist small business. We look forward to further initiatives to support the small business as they endure increased costs of doing business.

2.5million small businesses contribute 1/3 of GDP and 43% of apprentices/trainees are in SMB. Currently 61% of small business owners have a total personal income of under $78,000 which is less than the average weekly earnings. 45% of small business fail to make a profit.

The mums and dads, the individuals with good ideas, the entrepreneurs want a business environment where they cannot only survive but can contribute more widely to the economy and their communities. We look forward to the 2023 budget supporting small business.

For more detail on the announcement see the Ministers Media Release



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