Handed down on 9 May, the Federal Budget sets out a surplus of $4.2 billion for the current financial year, with a predicted deficit of $13.9 billion expected in 2023-24.

Here are the key tax and super takeaways from the Budget for members to help guide their clients and businesses.

1. Energy boost to small business 

The Government has announced a bonus 20% deduction for small businesses (turnover less than $50 million) for expenditure that supports electrification and more efficient use of energy.  

The bonus is capped at $20,000 per annum and to assets first used or installed ready for use between 1 July 2023 and 30 June 2024. 

2. Superannuation to be paid with wages

From 1 July 2026, employers will be required to pay superannuation on payday, rather than at least quarterly. This gives businesses and superannuation funds three years to prepare.  

Some businesses need to start this work sooner rather than later. Significant administration changes will be required for this transition to be successful.   

3. Instant asset write off

Small business will be able to access the instant asset write off for assets costing less than $20,000 if they are used or installed ready for use between 1 July 2023 and 30 June 2024.  

4. GDP adjustment factor 

The pay as you go instalment and GST instalment GDP adjustment factor will be set at 6% rather than 12% for the 2023-24 year.   

5. Super fund non-arm’s length expenditure

Non-arm’s length expense tax penalties will continue to apply to self-managed superannuation funds and small APRA funds but at a reduced rate. APRA funds have been fully excluded.

6. ATO compliance program

More money has been allocated to the ATO for compliance activity, for areas such as personal tax, GST and tax debt collection. $9.1 billion is expected to be raised over 5 years from this expenditure.