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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.

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