Federal Budget 2022: What it means for you
Treasurer Josh Frydenberg has released the 2022 Federal Budget ahead of a Federal election in a few months. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions.
The Budget read as a pre-election sugar hit. Some small changes like cuts to fuel excise may impact your day to day budget, but we saw little that should alter your long term plans.
- Fuel excise reduction for 6 months
- The low and middle income tax offset was increased from a maximum $1080 to $1500 but with an end date nominated for next year
- The instant asset write off and total full expensing of depreciating asset provisions were extended to June 2023
- There is a boost to both skills and training along with technology investment whereby eligible business will get a bonus 20% deduction when lodging their FY23 tax return on expenditure incurred from 29 March 2022 onward. We like this initiative as a way to develop and improve skills and technology, but we’d like to see legislation before committing to new expenditure.
- Apprentice subsidies have been tweaked to be more attractive
- Parental leave schemes have been made longer and more flexible for both mum’s and dad’s to take time out
- $250 cost of living payment for eligible recipients – pensioners, carers, veterans, job seekers and other concession card holders
- RAT’s have been confirmed as tax deductible and not subject to FBT when used for work purposes
- Telehealth will become a permanent part of health delivery rather than a Covid specific measure
If you want to dive deep into the details the team at Tax Banter have a comprehensive explanation:
https://taxbanter.com.au/wp-content/uploads/2022/03/Federal-Budget-2022-23.pdf
Some of the budget changes will be immediately implemented and others may never be implemented so tread carefully before committing to action based on government announcements.
Tax Avoiders
There’s also funding for an expanded task force to target tax avoidance by multinationals, large public and trust groups and wealthy individuals.
Get in touch
Got a question about how this budget will affect you? Get in touch with us today. We’ll keep you updated as more information is released.
