The 2023-2024 federal budget is barely 24 hours away, with its release capping off a whirlwind of announcements and expectation-setting statements made by the Albanese government since last October’s placeholder budget.
Buffeted by economic headwinds, federal leaders have repeatedly advised it won’t be a spending free-for-all, yet some $14.6 billion in cost-of-living relief is on the cards.
All eyes will be on how exactly those funds take shape, but lawmakers have already detailed some key policies and how much they’ll cost. Here’s a quick look at what small businesses and startups can expect to see tomorrow night.
For the first time since 2008, the federal government is set to deliver a budget surplus. Late on Monday, Treasurer Jim Chalmers confirmed the 2022-2023 budget will eventuate in a “small” surplus of $4 billion, Nine reports, followed by “smaller deficits and less debt.”
“We are managing the budget responsibly, helping with the cost of living, and investing in the future,” he said.
The result is largely the result of Australia’s booming resource exports, which have contributed healthily to the federal government’s tax revenue.
Don’t expect the first surplus in 15 years to necessarily carry on in the years to come: high resource prices are expected to moderate in years to come, making such a feat less likely as Canberra addresses the long tail of costly COVID-era policies.
Treasurer Jim Chalmers confirmed on Sunday that small businesses and households across Australia will be eligible for some $1.5 billion in energy bill rebates, as flagged in last December’s $3 billion power bill relief package. Media reports suggest individual rebates will top out at $500, with Chalmers suggesting they will vary depending on geographical location.
Small businesses that invest in energy-efficient technology will be eligible for up to $20,000 in bonus tax rebates under the Small Business Energy Incentive scheme, a plan estimated to cost $314 million over four years. It mirrors elements of the tech and training boosts brought in by the Morrison government, which are yet to be legislated.
A separate grant program makes a trifecta of energy policies tailored for small businesses. The $64 million Energy Efficiency Grants for SMEs program offers up to $25,000 in federal government funding towards energy efficiency upgrades, like efficient refrigerators and air conditioners, LED lighting, water boiler replacements, and insulation around ovens and pipework. The first round, valued at $16 million, has already been completed.
The Tax Practitioners Board (TPB) will receive a surge of federal government funding, on top of the funding it already receives through the Australian Taxation Office, to ensure it can identify and weed out bad actors. It comes after the high-profile PwC tax leak scandal, in which the TPB found a senior leader “made unauthorised disclosures” of confidential tax consultations with the ATO to other staff at PwC.
Two significant reforms are on the way. The first, payday superannuation, aims to peg the payment of superannuation guarantee payments to an employee’s payday, instead of quarterly instalments. The second aims to install a new tax rate of 30% on superannuation balances over $3 million. The measures will come into play in 2026 and 2025, respectively, but you can expect some of those costs to be forecast in the upcoming budget papers.
Back in December, $402 million was pledged to the Jobs and Skills Councils to help combat skills shortages. Some of the targeted sectors include energy, automotive, transport and logistics, finance and mining. Read the full story here.
In April, the Albanese government announced it is prepared to invest an additional $3.7 billion for a five-year national skills agreement to be negotiated with states and territories, in addition to $400m to support another 300,000 TAFE and vocational education and training fee-free places. The government still needs to negotiate with the states and territories on the agreement, with commencement planned for January 2024.
The Minister for Industry and Science, Ed Husic, recently announced Australia’s first national quantum strategy. According to the federal government, it’s estimated that quantum-based industries could create 19,400 direct jobs and $5.9 billion in revenue by 2045. While we don’t have an exact dollar amount for the strategy, it will be a part of Labor’s $1 billion National Reconstruction Fund that has been set aside for critical technologies. Read the full story here.
$39.3 million will be provided to the National Roads and Motorists’ Association (NRMA) to help build 117 EV fast-chargers across the country. The NRMA will match these funds. This will be coming out of the previously-introduced $275.4 million Driving The Nation Fund that aims to provide cheaper and cleaner transport across Australia.
Valuations may have dipped from their lofty peaks, but the Australian Securities and Investments Commission is only increasing its focus on cryptocurrencies and other digital assets. In February, Chalmers and Assistant Treasurer Stephen Jones announced the corporate regulator will expand its crypto compliance team, ensuring investors and speculators comply with the rules. Expect those costs to be outlined on Tuesday.
Vapes and tobacco are also coming under the hammer in this week’s budget. $737 million will go into a number of initiatives to tackle tobacco and vaping issues within Australia. This will include a focus on banning the importation of non-prescription vapes, increasing quality standards and restrictions around flavoured vapes, and banning single-use vapes. “The Budget will include $63m for a public health information campaign to discourage Australians from taking up vaping and smoking and encourage more people to quit,” the Health Department’s website reads. “There will be $30m invested in support programs to help Australians quit, including through enhanced nicotine cessation education and training among health practitioners.”
Health Minister Mark Butler also revealed a new tobacco excise that will see a 5% increase over three years. The excise will come into effect on September 1. It’s estimated that the combined changes will result in $3.3 billion in extra taxes over four years.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
Deputy editor
A multi-award-winning journalist, Tegan has been reporting on technology, telecommunications and gaming for the past 10 years. She regularly appears on mainstream media channels as an expert tech commentator. Her previous roles include editor of Gizmodo Australia and global reviews editor at Finder. She has also served as a reporter and editor across Business Insider, Lifehacker and Kotaku Australia. Tegan is also the co-host of one of the top technology podcasts in Australia, Weird Tech. You can find her on Twitter @Tegan_Writes.
