Small Business in the Spotlight: How the 2022-2023 Federal Budget Will Affect Your Business

August 14, 2023
11
minutes to read
by
Jaala Alex
Contents

The 2022-2023 Australian Federal Budget is one of the most important economic events of the year, especially for small business owners. As a small business owner, it's crucial to understand the budget's impact on your operations and plan accordingly. In this comprehensive guide, we'll cover everything you need to stay informed about the budget and how it could affect your small business so you can hit the ground running when the details are announced.

What is the Australian Federal Budget? 

The Federal Budget is an annual financial statement outlining the Government's revenue and expenditure for the upcoming financial year. The Treasurer - Jim Chalmers - on behalf of the Department of Treasury, is responsible for presenting the budget to Parliament.

Small business owners keenly observe the budget announcement as it can significantly impact the economy and their business operations. The budget can include provisions that affect small businesses, such as changes to business tax rates or funding for small business programs. By staying informed about the budget, small business owners can make educated decisions about their operations and plan accordingly. 

Australian Treasurer, Jim Chalmers

 

When is the Australian Federal Budget announced? 

The Australian Federal Budget for 2022-2023 will be announced on 9 May, the second Tuesday of the month. This event is known as Budget Night, and the Treasurer will deliver the budget announcements in a speech at Parliament House.

The budget is generally announced on the second Tuesday in May. However, there have been rare situations where the date is modified. Due to the COVID-19 pandemic, the 2020-2021 budget was delayed and broadcast on 6 October 2020.

There have been many notable Federal Budget announcements over the years that have had a significant impact on the Australian economy and small businesses. Some examples include: 

  • In 2015-2016, the Government introduced a $20,000 instant asset write-off for small businesses, allowing them to deduct the cost of assets purchased for their business immediately. This policy has since been extended to¬†$150,000¬†and has helped many small businesses invest in new equipment and technology.¬†
  • In¬†2018-2019, the Government announced a small business tax rate reduction; from 27.5% to 25%. This was part of a broader plan to lower the tax burden on small businesses and encourage growth and investment.¬†
  • In¬†2020-2021, the Government introduced numerous measures to support small businesses during the COVID-19 pandemic, including the JobKeeper payment and the Cash Flow Boost. These policies helped many small businesses stay afloat during a difficult time.¬†
  • In the upcoming 2022-2023 budget, there are expected to be announcements related to infrastructure spending and potential changes to business tax rates.¬†

Small business owners should mark their calendars for the budget announcement and pay close attention to any changes that could affect their operations. Thriday can help you stay informed about the budget timeline and provide you with the tools you need to plan for any changes that may be coming. 

2021-2022 Australian Budget

How is the Australian Federal Budget created? 

The Australian Federal Budget is developed through a rigorous process that involves multiple steps and government agencies. The process typically begins in the months leading up to the budget announcement and involves the following stages: 

  1. Setting the budget framework: The Government sets the broad economic framework for the budget, which includes targets for economic growth, inflation, and other key indicators. 
  2. Revenue forecasting: The Department of the Treasury forecasts the Government's revenue for the upcoming financial year based on factors such as tax forecasts and other sources of income. 
  3. Expenditure planning: The Government determines its expenditure priorities for the upcoming year based on factors such as economic and social needs, election commitments, and other priorities. 
  4. Consultation and decision-making: The Government consults with stakeholders and makes decisions about specific policies and programs that will be included in the budget. 
  5. Budget preparation: The Department of the Treasury prepares the budget papers, including the budget speech and detailed government revenue and expenditure information. 
  6. Budget announcement: The Treasurer delivers the budget speech in Parliament House on Budget Night, outlining the Government's revenue and expenditure for the upcoming financial year. 

Small business owners should stay informed about the budget creation process and any announcements that could impact their operations. No matter what budget is announced, Thriday is the perfect tool for streamlining your business financial planning. You can join Thriday for free and automate your banking, accounting and tax today.

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Where is the Australian Federal Budget spent? 

The Australian Federal Budget is allocated across various programs and services, including health, education, infrastructure, defence, social security, and more. Recently, there has been a focus on investing in infrastructure and supporting small businesses. 

In the upcoming 2022-2023 budget, economists expect the Government to invest billions of dollars in roads, rail, and other major projects. This investment aims to create jobs, boost economic growth, and improve the country's infrastructure. 

Small business owners should pay attention to where the budget will be spent, as it can impact operations. For example, if new infrastructure projects are confirmed, it could create opportunities for small businesses in the construction or service sectors. Recently, the Suburban Rail Loop program in Victoria has created thousands of jobs for local construction businesses.

If your business can take advantage of budget changes, then you can use Thriday to invoice your clients and provide you with budget planning tools.

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What will the Australian Federal Budget for 2022-2023 include for small businesses? 

Small businesses are a critical part of the Australian economy, and the Government has been working to support them through various programs and initiatives. In the 2022-2023 budget, the Government is expected to continue prioritising support for small businesses. 

Some potential small business initiatives expected in the 2022-2023 budget include: 

  • Tax incentives:¬†The Government will likely provide tax incentives for small businesses, such as reduced business tax rates or increased deductions for expenses related to business operations. This will assist businesses that are struggling with rising inflation and salary costs.
  • Access to funding:¬†The Government is expected to provide increased access to funding for small businesses, such as through grants or loans. It is hoped that making it easier for small businesses to borrow money will encourage more economic investment.
  • Digital transformation:¬†The Government will continue to invest in programs that help small businesses to¬†adopt digital technologies like Thriday¬†and improve their online presence. The adoption of digital technologies leads to improved business efficiencies.
  • Training and development:¬†The Government could provide funding for training and development programs aimed at helping small businesses to improve their skills and grow their operations.¬†

Small business owners should stay informed about the budget announcements that could impact them and take advantage of any available Government support programs. 

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How does the Australian Federal Budget impact small businesses? 

The Australian Federal Budget can significantly impact small businesses, affecting the overall economic environment and the availability of funding and support programs. Here are some ways in which the budget can impact small businesses: 

Economic growth 

The budget can impact the overall economic environment, affecting small businesses' sales and profitability. For example, if the Government invests in infrastructure and creates jobs, it can boost economic growth and create new opportunities for small businesses.   

Funding and support programs 

The budget can also impact the availability of funding and support programs for small businesses. If the Government allocates more funding towards small business support, it can help entrepreneurs to access funding and resources to grow their operations.   

Taxation 

The budget can impact small businesses' tax obligations, with changes in tax rates or deductions affecting their bottom line. Small business owners should pay attention to any changes in taxation announced in the budget. 

 

How Thriday can help with budget planning 

Thriday provides a range of financial management tools, including budget tools, that can help small business owners to keep track of their finances and plan for the future. Here are some ways in which Thriday can help with budget planning: 

Multiple sub-accounts

With Thriday, you can create up to 9 bank accounts* that can be assigned to different budget goals. A popular way to use sub-accounts is to implement the Profit First method, where individual accounts are created to receive Income, Taxes, Owner's Pay, Opex and Profit.

Automated budget tracking 

Thriday can connect your bank accounts* and automatically track your income and expenses. This can save you time and make staying on top of your finances very straightforward.   

Cash flow forecasting 

Thriday can help you to forecast your future income and expenses based on your past financial data. This can help you to plan for the future and make informed decisions about your business. 

Scenario planning 

Thriday allows you to export your income and expenses into a CSV file, so you can see how changes in income or expenses could impact your bottom line. This can help you to make contingency plans and prepare for unexpected events. 

Tax estimates

Thriday provides personalised tax estimates based on your financial data. This can help you identify ways to reduce your tax bill heading into the end of the financial year. 

Thriday is a powerful tool that can help small business owners to stay on top of their finances and plan for the future. By using Thriday, you can save time, make better financial decisions, and ensure the long-term success of your business. 

 

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Australian Federal Budget FAQs 

When is the Australian Federal Budget announced? 

The Australian Federal Budget is announced in May each year, usually on the second Tuesday, but this can vary depending on the Government's timeline. 

Who creates the Australian Federal Budget? 

The Australian Federal Budget is prepared by the Treasurer, who is responsible for managing the Government's finances. 

Where is the Australian Federal Budget spent? 

The Australian Federal Budget is spent on a variety of areas, including healthcare, education, infrastructure, defence, and social services.   

What is a budget surplus? 

A budget surplus occurs when the Government's revenue exceeds its spending, resulting in a surplus of funds. 

What is a budget deficit? 

A budget deficit occurs when the Government's spending exceeds its revenue, resulting in a deficit of funds.   

How does the Australian Federal Budget impact small businesses? 

The Australian Federal Budget can impact small businesses in several ways, including affecting economic growth, funding and support programs, and taxation. 

How can Thriday help with budget planning? 

Thriday can help with budget planning by providing automated budget tracking, budget forecasting, scenario planning, and personalised insights. 

 

Key Takeaways 

The Australian Federal Budget affects all Australians, including small business owners. It is essential to understand the basics of the Federal Budget and to watch for notable announcements that may impact your business, such as changes to business tax or funding and support programs. 

Small business owners can also benefit from budget planning tools like Thriday, which can help to automate tracking, forecast future finances, and provide personalised insights and recommendations. By staying informed and utilising budget planning tools like Thriday, small business owners can take control of their finances and set their businesses up for the year ahead.

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