Federal Budget 2023-24
Business forced to dig deep as Budget spending restrained
The 2023-24 Federal Budget, delivered by Treasurer Jim Chalmers is focused on softening the blow of inflation and cost-of-living rises. The mantra was helping people struggling to make ends meet.
For business, that Budgetary restraint could prove frustrating, with only a handful of positive measures, predominantly designed to support energy efficiency. There is an absence of structural reform to support business through the forecast economic tightening. Businesses will need to find their own path and not rely on any Government led change to reshape the Australian economy and mitigate the tougher times ahead.
Access our comprehensive analysis below to understand the impacts of this year’s Federal Budget on individuals and mid-market businesses.
Looking at specific sectors, investment in dwelling construction is expected to contract by 2-3% for the coming three years. Retailers are on notice that household consumption is set to level off with minimal growth in the period 2023-25, and investment by business will also slow considerably over the same period.
Two minor initiatives are offered in this year’s Budget for smaller businesses as initiatives to support small-scale capital investment. The first of these is a temporary increase of the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024, limited to businesses with aggregated annual turnover of less than $10million. The $20,000 threshold will apply on a per asset basis, so eligible businesses can instantly write off multiple assets.