Rebates and Concessions for Small Businesses in 2023-2024

Quick Overview

Snapshot of Expert Insights:

  • Rebates are accessible to eligible small businesses as we step into the new fiscal year.
  • Some initiatives necessitate asset acquisition or installation by specific dates; therefore, it’s vital to keep track of deadlines.
  • Accountant Craig Dangar cautions against significant purchases solely for the purpose of accessing schemes like the instant asset write-off, emphasising alignment between invested time and resultant value.

With the new financial year underway, let’s recap the major rebates and concessions designed for small businesses during the 2023-2024 financial period. Additionally, we provide valuable tips from an experienced accountant on maximising the potential of these initiatives.

Exploring Rebates, Concessions, and Allowances

Instant Asset Write-Off

The instant asset write-off, initially introduced as part of COVID-19 response measures, has been extended until the conclusion of the 2023-2024 fiscal year. This initiative enables eligible small businesses to deduct the complete cost of assets valued up to $20,000, provided these assets are put to use or installed between July 1, 2023, and June 30, 2024. Notably, the $20,000 threshold applies on an asset-by-asset basis, allowing small business owners to write off multiple assets concurrently.

Small Business Energy Incentive

The Small Business Energy Incentive targets assisting small businesses in covering the upfront expenses associated with investing in energy-efficient equipment. Businesses with an annual turnover under $50 million can benefit from a 20% deduction on expenditures related to electrification and enhanced energy utilisation. A maximum total expenditure of $100,000 qualifies for this novel tax incentive, translating to a potential maximum bonus tax deduction of $20,000 per business.

Energy Bill Relief Fund

The Energy Bill Relief Fund is designed to alleviate the electricity bill burden on eligible small businesses. Amounts ranging from $325 to $650 are offered, contingent upon the specific state or territory. Detailed information regarding allowance values in each jurisdiction can be found on the energy.gov.au website.

Small Business Technology Investment Boost

The Small Business Technology Investment Boost provides eligible enterprises with an additional 20% tax deduction, aimed at supporting digital operations and the digitisation of business processes. Qualifying expenses encompass diverse categories, such as:

  • Computers and software
  • Digital media and marketing content
  • E-commerce products or services
  • Cybersecurity systems

Small Business Skills and Training Boost

Eligible businesses can benefit from a 20% tax deduction via the Small Business Skills and Training Boost. This pertains to external training programs delivered to employees through registered training providers. Notably, training for non-employee business owners, such as sole traders, is not eligible.

Cyber Wardens

Administered by the Council of Small Business Organisations Australia (COSBOA), the Cyber Wardens program aims to enhance cybersecurity practices among small businesses by facilitating the training of in-house cyber wardens.

In Summary

The table below provides a concise overview of key details for each initiative, but it’s crucial to delve into the comprehensive information for each scheme.

Instant Asset Write-OffSmall businessesFull asset cost deduction up to $20,000
Small Business Energy IncentiveTurnover < $50 million20% deduction, max bonus of $20,000 per business
Energy Bill Relief FundEligible small businesses in specific regionsRelief of $325 to $650 on electricity bills
Small Business Technology Investment BoostSmall businessesAdditional 20% tax deduction for specified expenses
Small Business Skills and Training BoostEligible businesses20% tax deduction for external employee training
Cyber WardensSmall businessesEnhanced in-house cybersecurity training

Visit the ato.gov.au website for a more comprehensive look at the initiatives and eligibility.

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