2022-2023 Budget Summary
KEY POINTS FROM THE 2022-2023 FEDERAL BUDGET
As the post-pandemic economic recovery continues to take shape, Australian Federal Treasurer Josh Frydenberg has handed down the 2022-23 Federal Budget.
Among the proposed changes, he announced a temporary cut to fuel excise, help for home buyers and extended relief for retirees, as well as a one-off cost of living payment to millions of Australians.
Remember, many of these proposals could change as legislation passes through parliament. We will keep you informed and provide more information as it is passed by parliament.
COST OF LIVING – FUEL
Fuel excise will reduce from 44.2 cents per litre to 22.1 cents per litre from 30 March 2022.
INDIVIDUALS
The low and middle income tax offset for taxpayers earning less than $126,000 will be increased for the 2021-22 income year to $1,500 for individuals and $3,000 for couples.
SOCIAL SECURITY
Eligible pensioners, welfare recipients, veterans and concession card holders to receive $250 cost of living payment.
INFRASTRUCTURE
$17.9 billion committed towards new and existing infrastructure projects.
SMALL BUSINESS – SKILLS BOOST
Small businesses (turnover less than $50 million) can deduct an additional 20% of expenditure incurred on external training courses for employees.
SMALL BUSINESS – TECHNOLOGY BOOST
Small businesses (turnover less than $50 million) can deduct an additional 20% of expenditure incurred on business expenses that support digital adoption.
RETIREES – SUPERANNUATION
The 50% reduction of superannuation minimum drawdown requirements for account based pensions and similar products extended to 30 June 2023.
EMPLOYEE SHARE SCHEMES (ESS)
Reduction of red tape so that all levels of employees can participate in ESS by reducing regulatory requirements.
PATENT BOX
Tax concessions will be expanded to agricultural and low emissions technology innovation sectors. Eligible corporate income will be subject to an effective tax rate of 17%
DEFENCE
10 year defence capability plan worth more than $270 billion supporting more than 100,000 jobs
HOUSING GUARANTEES
Expanding the Home Guarantee Scheme which will be available for up to 50,000 places each year.
PRIMARY PRODUCERS
Concessional tax treatment to primary producers that generate revenue from the sale of Australian Carbon Credit Units (ACCUs) and biodiversity certificates by treating the income as part of primary production income.
COVID-19 TEST EXPENSES
For individuals, will be tax deductible if required for employment. Businesses will not be subject to FBT where COVID-19 tests are provided to employees for attending work.