The 2022-23 Federal Budget has been released. What’s in it for you includes:

Individuals

  • Low & Middle Income Tax Offset has a One Off Increase of $420 to $1,500. This is received as a rebate on lodgement of your 2022 Tax Return from 1 July this year.
  • Costs of Covid-19 tests are tax deductible from 1 July 2021.
  • A one off $250 cost of living payment will be made in April 2022 to current recipients of most Government Support Benefits.
  • Temporary Reduction in Fuel Excise from 30 March 2022 for 6 months from 44.2 cents to 22.1 cents for petrol and diesel. This should reduce the price of fuel at the petrol station by 22 cents for the next 6 months.

Business

  • Introduction of a Skills & Training Boost Deduction to support small and medium sized businesses to upskill their employees. Eligible expenditure incurred from 29 March 2022 to 30 June 2024 will be entitled to a Tax Deduction for an additional 20% of the expenditure. This eligible expenditure is mainly for external training courses.
  • Introduction of a Technology Investment Boost Deduction to support digital adoption by small and medium sized businesses. Eligible expenditure up to $100,000 incurred from 29 March 2022 to 30 June 2023 will be entitled to a Tax Deduction for an additional 20% of the expenditure for business expenses and depreciating assets that support digital adoption (such as portable payment devices, cyber security systems & subscription to cloud-based services).
  • Extending Covid-19 business grants as Tax Free Income to 30 June 2022.
  • Temporary Reduction in Fuel Excise from 30 March 2022 for 6 months from 44.2 cents to 22.1 cents for petrol and diesel. This should reduce the price of fuel at the petrol station by 22 cents for the next 6 months.

Superannuation

  • Extending the 50% reduction of the Minimum Drawdown of Pension Payments for Account Based Pensions to 30 June 2023.
  • The Super Guarantee rate to increase to 10.5% on 1 July as previously legislated.
  • The $450 threshold before super guarantee applied is removed from 1 July 2022 as per last year’s budget announcement. Super Guarantee will be required to be paid from all normal wages from 1 July 2022.

This budget is aimed at assisting people with cost of living increases that are occurring in the economy.

The Federal Government is estimating a $79 billion deficit for this 2022 Financial Year and a $78 billion deficit for the 2023 Financial Year.​​ The Government’s Gross debt is forecasted to be $977 billion at the end of this 2023 Financial Year. This is forecasted to rise to $1.169 trillion at the end of the 2026 Financial Year.

As these are only the main points, please click here for further details. If you have any questions please contact us.

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