2022 / 2023 Federal Budget
The Treasurer delivered his fourth budget last night which was much a prelude to the Federal Election (expected in May) as it was a manuscript to steer Australia towards economic recovery.
Key Points:
For Business Owners:
- Additional 20% deduction for eligible external training courses for upskilling employees;
- Additional 20% deduction for expenditure on digital technology;
- Improvements to Employee Share Schemes;
- Changes to calculations in PAYG Income Tax Instalments;
- Reducing the administrative burden of some State and Federal tax requirements;
- FBT exemption of COVID-19 test expenses
For Individuals:
- Temporary lifting of low and middle income tax offset by $420 to $1,500;
- $250 payment to pensioners and other welfare recipients during April, 2022;
- Expansion of 1st Home Buyers Scheme;
- Small adjustment to Medicare Levy Low-Income Thresholds;
- Deductibility of COVID-19 test expenses from 1st July, 2021 (for attendance to work purposes)
Action Points for Business Owners
Nothing much really here to be concerned although SME’s will benefit from $17.9 billion commitment to new and existing infrastructure spend in road, rail and community projects – biased to NSW and QLD.
It is interesting to note, whilst there are no changes from previously advised amendments to the Superannuation Guarantee from 1st July, 2022 (rising form 10% to 10.5% with no $450 monthly threshold), however Budget papers specifically imply (warn):
Employers need to be mindful that they cannot use an employee's salary sacrificed contributions to reduce the employer's extra 0.5% of super guarantee.
If you have any matters you wish to discuss about last night’s announcements, please do not hesitate to contact our office.
For further detail please click here.