Business Newsletter - April 22
You’re probably sick of hearing about the election, so I’ve got some other business and finance stories I think you’ll enjoy:
· Govt unveils pro-business Budget
· New tech investment incentive
· Job market keeps tightening
· Workers returning to offices
Read more below.
Starting in the new financial year, the federal government will implement a series of reforms that are designed to improve cash flow and reduce red tape for businesses.
Lower tax instalments. As of 1 July 2022, the government will set the GDP uplift rate for PAYG instalments and GST instalments to 2%, rather than the 10% rate that would've applied under the statutory formula. This will mean lower instalments for businesses that are eligible to use the instalment amount method.
Pre-filling of payroll tax returns. As of "late 2023", the government will share single touch payroll data with state and territory governments, so they can pre-fill payroll tax returns. This measure is designed to improve lodgement accuracy, reduce compliance costs and save time for businesses that have payroll tax reporting obligations.
Lower PAYG instalments. As of 1 January 2024, companies will be able to calculate PAYG instalments based on financial performance. If that performance declines, companies may be able to get refunds of instalments paid automatically.
Automatic reporting. As of 1 January 2024, companies will be able to report taxable payments reporting system data via software at the same time as activity statements. Businesses that opt into automatic reporting will no longer need to invest time and money filling out the yearly Taxable Payments Annual Report.
Click here for more information.
I can help you get a business loan The federal government has made it easier for small businesses to invest in new technology, after unveiling the Small Business Technology Investment Boost in the recent Budget.
Businesses with aggregated annual turnover of less than $50 million can now deduct an extra 20% of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services.
This measure will apply to purchases made between 29 March 2022 and 30 June 2023.
For eligible purchases between 29 March 2022 and 30 June 2022, your business can claim the expenditure as usual in your 2021-22 tax return and claim the additional 20% bonus deduction in your 2022-23 tax return.
For eligible purchases between 1 July 2022 and 30 June 2023, your business can deduct the entire 120% in your 2022-23 tax return.
An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.
The labour market has continued to tighten, despite unemployment officially remaining at 4.0% in March.
The Australian Bureau of Statistics has reported that between February and March:
· The number of employed people increased 0.1%
· The number of unemployed people decreased 2.1%
· The underemployment rate fell from 6.6% to 6.3%
As a result, there are fewer people looking for jobs or additional hours, making it harder for businesses to secure talent.
Unemployment is expected to fall to 3.75% later this year, according to government forecasts, which would be the lowest level in almost half a century.
Annual wages growth has increased for four consecutive quarters – from 1.4% in December 2020 to 2.3% in December 2021 – although it is still low by historical standards. The next wages data, which will be released next month, is expected to show a further increase.
CBD workers are drifting back into their offices, in another sign Australia is leaving the pandemic behind.
Between January and March, occupancy rates increased in Sydney, Melbourne, Brisbane, Adelaide and Canberra, according to the Property Council of Australia,
The exception was Perth, which was dealing with its peak Omicron infection period.
The Property Council survey also found that 32% of respondents expect to see a major increase in occupancy levels in one to two months, while 56% expect it to take three months or more.
Property Council chief executive Ken Morrison said it’s heartening that people are returning to the office in such numbers.
“To see office occupancy rates double in some of our major CBDs is especially pleasing and bodes well for further recovery in the months ahead,” he said.
“While most businesses are encouraging some flexible working arrangements with their staff, there are huge benefits in personal connection and it’s good to see these being embraced once again."