Federal Budget 2022-23

The Federal Budget, announced on 29th March 2022, included some changes to tax breaks for businesses.

  • The instant asset write off has not been extended, meaning businesses will have to have installed or be using new equipment by June 30, 2023 to claim full expensing.
  • A new Technology Investment Boost will provide a 20% bonus deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year. This is available to businesses with a turnover of up to $50m per year. Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.
  • A new Skills and Training Boost will work in a similar way, providing a 20% bonus deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

  • Treasurer Josh Frydenburg explained it in this way: “for every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction….every hundred dollars these small businesses spend on digital technologies — like cloud computing, e-invoicing, cyber security and web design — will see them get a $120 tax deduction”
  • There are a number of changes to the resourcing of small business-related agencies, including a small business unit within the Fair Work Commission and the Australian Small Business and Family Enterprise Ombudsman.
  • The Australian Retailers Association has welcomed the changes and will seek more information on how $2.8 billion for apprenticeships and traineeships will apply to the broader retail, and hair and beauty industry. The AMA is a member of the ARA.

Arts funding does not directly affect many of our members, but there are some changes in this year’s budget that affect the music sector. The most obvious change is winding back additional spending from the past two years, which was prompted by the pandemic.

Total funding for the arts will fall from $989 million in 2021-22 to $799 million in 2022-23, which includes the reduction or end of COVID-related funding and particular variations such as Screen Australia’s funding, then to $736 million in 2023-24 which affects particular institutions and programs (National Gallery, Maritime Museum) but not others (Australia Council).

Sources: ABC News | Government Media Release | ARA response