Published on 21/04/2022 by Any Business.Com.Au

Election 2022: What's in it for Small Business?

Anywho, as a small business owner or a person who may be looking to buy a business, we thought you might like to know which 'promises' might be applicable to you should either Labor or the Coalition take office post the May 21 election.

The Coalition

The Morrison Government has pledged to deliver $1.6 billion in tax relief to support small businesses to go digital and upskill their employees.

As part of its plan, the Technology Investment Boost is designed to increase digital uptake while the Skills and Training Boost is aimed at helping small business attract, retain and upskill staff.

Building on previous small business investment incentives, including the instant asset tax write‑off which is in place until 30 June 2023, the proposed Budget includes a package of measures to support small businesses to grow, innovate and create more jobs, according to the government.

Technology Investment Boost

The Government's Technology Investment Boost is aimed at reducing the cost of going digital, supporting businesses to invest more in their digital capability. This measure is expected to provide tax relief of $1 billion.

More than 3.6 million small businesses with an annual turnover of less than $50 million will be able to claim a bonus 20 per cent deduction for the cost of expenses and depreciating assets, up to $100,000 of expenditure per year.

Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloud-based services.

The boost will apply to expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

Skills and Training Boost

The Government's Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. This measure will provide tax relief of $550 million.

Small businesses will be able to claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.

This boost will apply to eligible expenditure incurred from Budget night until 30 June 2024.

The Morrison Government has also promised to support small businesses by making it easier to do business. This includes:

$10.4 million to enhance and redesign the Payment Times Reporting Portal and Register, making it easier to view the payment practices of Australia's largest organisations.
$5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier for them to meet workplace obligations.
$8 million to the Australian Small Business and Family Enterprise Ombudsman making it easier to access expert advice.
$4.6 million to extend Beyond Blue's NewAccess for Small Business Owners program, making it easier to access mental health support.
$2.1 million for Financial Counselling Australia's Small Business Debt Helpline making it easier for small business owners to receive financial advice.

Cash Flow Support

If the Coalition is victorious, the GDP uplift rate that applies to PAYG income tax and GST instalments is expected to be reduced to 2 per cent for the 2022-23 income year.

This will mean lower tax instalments, delivering $1.85 billion in cash flow support for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.

Labor

If Labor is successful at the polls it has pledged to cut invoicing delays, minimise merchant fees, and slash red tape in its small business election platform

Labor has made its election pitch to the small business community, promising to cap invoice payment times at 30 days, champion lower merchant service fees, standardise disaster support, and slash red tape at tax time.

Invoicing Delays Cut

Labor's plan is to limit the time between a small business invoicing a government agency, and that public body actually paying the vendor or service provider.

The 30-day commitment serves as a direct appeal to SMEs, which serviced 27%, or $18.7 billion, of Commonwealth contracts in the 2020-2021 financial year. The current average payment time sits at 37 days, according to Labor.

Labor previously announced a plan to "maximise" government procurement from local companies if elected.

Least Cost Routing

Beyond a commitment to paying contractors in a timely manner, a Labor government has promised it would work to lower transaction costs for vendors.

That plan hinges on least-cost routing — a method where merchants can cut the cost of transaction fees each time a customer makes a debit purchase.

Least-cost routing allows merchants to process debit sales through Australia's eftpos system, which can charge lower merchant fees per transaction than the international Visa Debit and Debit Mastercard systems.

Standardised Small Business Support

Labor has also pledged to standardise the kind of business support packages available to small businesses in times of disaster.

If elected, the party has promised to work with state and territory governments, industry groups, and local communities to "end the uncertainty" surrounding crisis payments and who can access them.

The party also said it would work to cut the time small businesses spend organising their tax affairs, increasing the time operators can spend growing their operations.

Hopefully we've cleared some of the clutter around what's in it for small businesses should either party be elected.

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.