Tuesday May 9 2023

Federal Budget
2023 - 2024

Business Analysis


The Federal Budget for 2023-24, the second handed down by Treasurer Jim Chalmers, has a heavy focus on providing cost-of-living relief to Australians most in need. Some measures are also introduced to ease the cost of doing business.

The Budget delivers a surprise small surplus for 2022-23 – the first in 15 years – ahead of a challenging 2023-24, which is predicted to see GDP growth halving to just 1.5% and unemployment rising. Nevertheless, real wage growth is expected to return in 2023-24, as inflation finally comes under control.

Key measures  

  • Instant asset write-off: $20,000 instant asset write-off for small business allowing those with aggregated annual turnover of less than $10 million to immediately deduct eligible depreciating assets costing less than $20,000.
  • Cyber security: Introducing practical measures to guard small businesses against cyber threats through a $23.4 million program to help them train in-house cyber wardens.
  • Small Business Energy Incentive: Almost all of NSW’s 840,000-plus small and medium businesses could be eligible for up to $20,000 in tax relief under the scheme.
  • Energy Bill Relief Fund: One million small businesses nationwide will get power bill rebates through the jointly funded Energy Bill Relief Fund with NSW businesses to receive $650 in relief from July 1.
  • Hydrogen Headstart program: $2 billion to support a new Hydrogen Head Start program that includes Wollongong in NSW.
  • Fee-free TAFE places: 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors.
  • Housing: A new focus on rent relief and unlocking additional funding to build 1 million new affordable homes. 
  • Ease of doing business: $2 billion in initiatives to simplify the interface between businesses and government services.