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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