Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.
Xero Report: Small Business Creation at Record Levels
Landmark research from Xero has revealed new small business registrations in Australia are at unprecedented levels, growing 34% from 225,000 in 2019 to over 300,000 in 2021. Over the next 10 years, an estimated 3.5 million small businesses are expected to be created. This should contribute about $370 billion to the Australian economy.
Economy is Recovering, but IMF Forecasts a Sharp Decline in 2023
According to the IMF’s latest forecasts, the commodities boom unleashed by Russia’s invasion of Ukraine will boost GDP in Australia this year. Real growth is forecasted to increase to 4.2% this year, but it is expected to decline sharply in 2023 to just 2.5%.
Australia Expects Digital Trade Agreement with India by Year-End
Australia expects to sign a Comprehensive Economic Cooperation Agreement (CEPA) with India by the year-end. This will include a deal on digital trade that will further facilitate bilateral trade. This involves integrating modern and forward-looking rules which support the use of digital tools to enable trade.
Tourism Australia Unveils Virtual Travel Fair
Tourism Australia has launched a Virtual Travel Fair in India. This brings together seven airlines and tourism products and experiences to offer travellers with attractive deals on holidays to Australia. Previous versions of the Virtual Travel Fair generated over 87,000 bookings for partner airlines.
Bonus Tax Deductions for Small Businesses
The Technology Investment Boost allows small businesses to claim 120% of the costs of new technologies and training courses to upskill staff as deductions. An annual cap of $100,000 will apply to eligible technology expenditure, with the initiative set to last until 30 June 2023.
Super to Cover More Employees
From 1 July 2022, you will need to pay super to your employees who earn less than $450 per month, provided they meet other eligibility requirements. This expands super guarantee eligibility so employees can receive super regardless of how much they earn.
Business Assistance Package for WA Businesses
The Level 2 COVID-19 Business Assistance Package is available for businesses in Western Australia most impacted by restrictions. The assistance includes a $66.8 million Small Business Hardship Grants Program, $2.8 million of payroll tax relief for large hospitality businesses, and $2.1 million for a COVID-19 Commercial Sporting Franchises Support Program.
Safe Transition Industry Support Package
The WA Government has launched a $77 million Safe Transition Industry Support Package to assist eligible businesses and individuals in sectors most affected by the decision to delay the full reopening of WA’s borders. It includes nine support programs for the international education, tourism, aviation and events sectors.
Pandemic Leave Disaster Payment
People who are forced out of work to isolate due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment.
You are also eligible if you are caring for a child under 16 years old who is a close contact or infected, or someone with a disability or a severe medical condition who is a close contact of someone with COVID-19.
You can find more information about Pandemic Leave Disaster Payment conditions specific to your state or territory here.
Support for Small Businesses
If your business is struggling, the ATO offers a wide range of support for those affected by the pandemic, natural disasters, mental health issues, or financial difficulties.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.