2022-23 Federal Budget

On March 29^th, 2022, Treasurer Josh Frydenberg announced the 2022-23 Federal Budget. Here are some key takeaways you should know.

For Individuals

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 1^st, 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 28^th, 2022.

•   Superannuation – the 50% temporary reduction in superannuation minimum drawdown rates extended to June 30^th, 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 1^st, 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

Workforce

•   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.

Housing

•   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.

Digital Economy

•   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