Budget terms of trade bolster revenue
DLA Piper has welcomed the 2022/23 Federal Budget which contains several important business tax and related initiatives for our clients.
“A strong resources and commodities sector has assisted the government in providing a range of temporary measures in response to cost-of-living concerns alongside some key business measures,” said Jock McCormack, Partner, DLA Piper.
“The budget restated the government’s commitment to amend Australia’s foreign investment regime. Although previously foreshadowed, efforts to reduce the regulatory burden faced by investors would assist to drive the economy.
Most importantly, the budget also expands the ‘patent box tax regime’ to support practical, technology-focused innovations in the Australian agricultural and veterinary sectors, as well as low emissions technology. These measures give a real incentive to companies to register and exploit new Australian patents.
Paul McNab, Partner, DLA Piper, said the government also announced tax incentives for small businesses, with aggregated annual turnover of less than $50 million, in relation to spending on digital adoption as well as spending on training and upskilling staff.
Both the Technology Investment Boost and Skills and Training Boost will allow small businesses to deduct an additional 20% of the costs on eligible expenditure.
The government will also expand access to employee share schemes (ESS) by amending the investment thresholds for unlisted companies.
“There are several budget measures which provide greater certainty for our technology sector and employees,” Paul added.