On March 29th, 2022, Treasurer Josh Frydenberg announced the 2022-23 Federal Budget. Here are some key takeaways you should know.
The Budget looks to ease some of these concerns and boost consumer confidence with several temporary measure include:
• Cost of living offset – a one-off increased payment of $420 included in the Low-and Middle-Income Tax Offset (LMITO). This begins on July 1st, 2022 and provides eligible earners a reduction of up to $1,500(from $1080) in a single household, or $3,000 in a dual household.
• Cost of living payment – a one-off payment of $250 provided to eligible pensioners, welfare recipients, veterans, and eligible concession card holders in April 2022.
• Fuel excise cut – the fuel excise will be cut in half from 44.2 cents per litre to 22.1 cents per litre for the next 6 months, ending on September 28th, 2022.
• Superannuation – the 50% temporary reduction in superannuation minimum drawdown rates extended to June 30th, 2023.
For Small Businesses
The Budget provides new incentives to help small businesses including:
• Technology Investment Boost – small businesses with an annual turnover less than $50 million can deduct a bonus of 20% on cost of expenses and depreciating assets that support digital uptake.
• Skills and Training Boost – small businesses can receive a deduction of 20% for eligible external training courses for their employees.
• Improved tax reporting – a new PAYG system that enhances the pre-fill of income tax and activity statements. This includes the calculation PAYG instalments and smarter taxable payments reporting beginning from January 1st, 2024.
• Lower GDP uplift rate – the default income increase rate used to estimate income for the purpose of calculating PAYG and GST instalments, will be lowered from 10% to 2% in the year 2022-23.
• NBN wireless network boost – an additional $480 million to improve wireless NBN access for households and businesses in regional and remote areas.
Other budget measures you may be interested in
• Apprenticeships Incentive System provides $2.8 billion to support Australian apprenticeships.
• $365 million provided to help extra 35,000 apprentices and trainees get into a job.
• $3.7 billion provided for national skills reform to support an additional 800,000 training places.
• Home Guarantee Scheme expanding to make 50,000 places available each year (currently capped at 10,000 places).
• An additional $2 billion provided for Housing Finance and Investment Corporation.
• First home buyers are now able to withdraw up to $50,000 from their super fund for the purchase of their new home.
Health & Human Services
• The National Disability Insurance Scheme to receive an additional $39.6 billion over 4 years to provide for 500,000 Australians with permanent or significant disabilities.
• $2.1 billion provided to improve the lives of women and children.
• $547 million invested on mental health services.
• An additional $6 billion for existing health programs in response to COVID-19.
• An additional $468.3 million to support the aged care sector.
• A $9.9 billion investment in Australia’s cyber security capabilities.
• $1.3 billion provided over 6 years to improve regional telecommunications.
• $130 million provided over 4 years to continue implementation of the Digital Economy Strategy.
Source: Josh Frydenberg, Treasurer of Australian Government
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Disclcaimer: The information provided within this article is general information only. None of the comments in these notes are intended to be advice, whether legal, financial product or professional. You should obtain specific advice regarding your particular circumstances from a tax or legal professional.
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