Albanese Labor Govt's Small Business Aid Approved by Parliament

Australian Treasury

The Albanese Labor Government's practical measures to support millions of small businesses and help them invest and grow has passed the Parliament today.

The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023 (the Bill) delivers measures announced in last year's Budget to ease pressure and boost resilience for small businesses.

Small businesses are the engine room of Australia's economy, which is why these measures are so critical and why we have built on them in this year's Budget.

The Bill will implement a $20,000 instant asset write‑off for assets first used or installed ready for use between 1 July 2023 and 30 June 2024.

This will improve cash flow and reduce compliance costs for small businesses with a turnover up to $10 million.

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

The Bill also implements the Small Business Energy Incentive, a 2023-24 Budget measure designed to help small and medium businesses save on their energy bills.

This will help small and medium businesses with turnover up to $50 million pay for upgrades to heating and cooling systems, install batteries, and switch to energy saving electrical goods such as efficient fridges.

This year's Budget built on these measures, delivering targeted new support for small businesses.

The Government's Small Business Statement in the Budget outlines more than $640 million for small businesses to ease the pressure, support small businesses to grow, and level the playing field.

This included a further targeted 12‑months of the $20,000 instant asset write‑off and an additional $3.5 billion of energy bill relief to households and small businesses through the Energy Bill Relief Fund.

From 1 July 2024, the Commonwealth will deliver rebates of $325 to around 1 million small businesses.

Quotes attributable to Minister for Small Business, Julie Collins MP:

"The Albanese Labor Government is committed to delivering a better deal for small business and recognises the sector is the engine room of the Australian economy.

"We're focused on delivering responsible, practical assistance to small businesses so they can continue to invest and grow. The passage of legislation delivers on this.

"The $20,000 instant asset write‑off and the Small Business Energy Incentive are complementary tax incentives that provide targeted support to Australian small businesses.

"The Government will continue to put small business at the centre of our decision making which the Budget's Small Business Statement confirmed."

Quotes attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones MP:

"The Albanese Government wants people to earn more and keep more of what they earn.

"We know that small businesses are the lifeblood of our economy and our communities, and our Budget invests in the security and certainty they need to thrive.

"Our plan will help small businesses electrify their heating and cooling systems, and upgrade to more efficient appliances, while saving money on their energy bills.

"This will help deliver ongoing power bill savings for businesses, while at the same time helping Australia lower emissions."

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