In an effort to fortify the economy, the government unveiled pivotal changes in May 2023, ranging from tax enhancements to bolstering green energy. Here’s a recap of what matters.
Boosting Tax Revenue Through Compliance
The government aims to elevate GST revenue by an additional $3.8 billion, intensifying its crackdown on non-compliant businesses. Allocating an extra $588 million to the ATO ensures enhanced GST compliance, emphasising accurate accounting and refund claims.
Tax Adjustments for Multinationals and Gas Companies
Multinational corporations face a new minimum tax rate, while gas companies confront an extra $2.4 billion in taxes over five years. These changes in the Petroleum Resource Rent Tax aim to augment government revenue, ensuring equitable contributions.
Combating Online Scams and Fraud
A $86.5 million allocation over four years targets online scams and fraud, featuring a National Anti-Scam Centre, resources for the corporate watchdog, and a system to thwart deceptive text messages.
Impact on Small Businesses
- A new tax break enables small firms to deduct the full cost of eligible assets (up to $20,000), benefiting businesses with turnovers under $10 million, fostering cash flows, and reducing compliance costs.
- Smaller businesses can leverage a 20% bonus tax deduction for investments in electrification and energy-efficient assets, available for businesses with turnovers up to $50 million.
- Approximately one million small businesses stand to benefit from lower power bills due to the government’s capped coal and gas prices, addressing the previous year’s energy crisis.
