The Federal Budget: Top Three Things Your Business Should Know
- Wage Inflation
The Australian economy is expected to maintain strong demand for labour and a tightening of the labour market, supporting a fall in unemployment and potential growth in wages.
- The Wage Price Index is forecasted to grow by 3.25% in 2022-23 from 2.75% in 2021-22.
- Strong inflation is predicted at 4.25% in 2021-22 and 3% in 2022-23 and as a result, real wages are not expected to grow in the short term. High inflation has been driven by global inflationary pressures such as elevated oil prices and supply chain disruptions which have caused a surge in US inflation.
As a result, it is extremely important that all businesses include a raise in wages in their forecasts and prepare to increase prices to remain profitable.
- Training
A 120% tax deduction will be available to small businesses (turnover less than $50 million) that invest in external training courses provided by registered Australian training entities. To claim this deduction, the relevant expenditure must be incurred between 30 March 2022 and 30 June 2024.
- Technology
A 120% tax deduction will also be available to small businesses which invest in ‘digital adoption’, up to an annual cap of $100,000. Expenditure eligible for this deduction includes normal business expenses and capital assets classified as technology and incurred between 30 March 2022 and 30 June 2023.
Please call or click to discuss with a Macro Group Team Member if you would like further information.
The Macro Group Team
Published on 1 April 2022