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Federal Budget 2022/2023 Posted on March 30, 2022
On Tuesday 29 March, the 2022/2023 Federal Budget was handed down by Josh Frydenberg. The measures announced in the budget are of course subject to legislative approval and to any policy changes which may come about if there is a change in Government at the federal election. Here’s a summary that we think will be of the most interest to our clients.
Cost of Living Measures
Virtually all of these policies were announced prior to the budget and include:
- A small increase in the Medicare Levy low income thresholds
- An increase in the low and middle income offset from a maximum of $1,080 to $1,500 with all other conditions remaining the same
- A one off $250 cost of living payment to recipients of various government benefits
- A six monthly halving of the fuel excise on fuel products (except aviation fuels), saving approximately 22c per litre on petrol and diesel
- A small reduction in the Pharmaceutical Benefits Scheme Safety Net Threshold
Businesses with a turnover of less than $50m will be eligible for a tax deduction of 120% of the costs for expenditure in Skills & Training and Technology investment.
Skills and Training
Expenditure incurred on external training courses provided to employees. The external training courses will need to be provided to employees in Australia or online and delivered by entities registered in Australia.
Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees.
Applies from 29 March 2022 – 30 June 2024
Expenditure incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services.
Applies from 29 March 2022 – 30 June 2023
- Various COVID related business grants will be confirmed as non-assessable income
- ABN holders will be required to confirm their details on the Australian Business Register annually from 1 July 2023
- Reportable payments made to contractors and subcontractors which are currently reported annually will be put on the same lodgement cycle as activity statements. This could potentially require monthly reporting for some businesses.
The 50% temporary reduction in the minimum drawdown rates for superannuation pensions which was due to expire on 1 July has been extended for the 2023 Financial Year.
The budget includes a wide variety of measures not mentioned above. If you’d like further information or additional detail on anything mentioned above, call us on 02 4320 0500.