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In the May 2024 Tax Insights survey, we asked Australian businesses What Federal Budget announcements will your business most benefit from.
Majority Responses
1. Instant Asset Write-Off Extensions (38%)
A significant portion of businesses (38%) indicated that they will benefit from the federal budget's instant asset write-off extensions. This provision allows businesses to immediately deduct the cost of eligible assets, reducing taxable income and providing immediate cash flow benefits.
Key advantages include:
- Encouragement to invest in new equipment and technology.
- Immediate tax relief which helps with financial planning.
- Enhanced ability to upgrade business assets, contributing to increased productivity.
2. Energy Bill Relief (32%)
A substantial number of businesses (32%) reported that they will gain from the energy bill relief measures included in the federal budget. These measures are designed to alleviate the burden of high energy costs, making it easier for businesses to manage their operating expenses.
Benefits include:
- Lower utility costs, freeing up capital for other investments.
- Improved financial sustainability, particularly for energy-intensive industries.
- Potential incentives for adopting energy-efficient practices and technologies.
Minority Responses
1. Industry Growth Programs (15%)
A smaller segment of businesses (15%) expect to benefit from industry growth programs outlined in the federal budget. These programs are aimed at stimulating growth and innovation within specific sectors.
Benefits may include:
- Access to funding and grants for research and development.
- Support for business expansion and entering new markets.
- Enhanced networking and collaboration opportunities within industries.
2. Defence Industry Grants (15%)
Similarly, 15% of businesses will benefit from grants targeted at the defence industry. These grants are intended to bolster the capabilities and competitiveness of businesses involved in defence-related projects.
Advantages include:
- Financial support for developing new defence technologies.
- Opportunities to participate in government contracts and defence projects.
- Strengthening of partnerships with defence organisations and other stakeholders.
By breaking down the survey results into majority and minority responses, it becomes clear which federal budget announcements are perceived to have the most widespread impact on businesses, as well as highlighting niche areas where specific sectors stand to benefit.
