On 29 March 2022, the Treasurer handed down the 2022/23 Budget with changes to tax and superannuation laws.
Here is a summary of some of the measures that may impact businesses and individuals.
- Small Business Technology Investment Boost and Small Business Skills and Training Boost (https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Small-Business-Technology-Investment-Boost-and-Small-Business-Skills-and-Training-Boost/)
- Extension to the Apprentice Wage Subsidies by three months to 30 June 2022. In addition, funding has been set aside over five years to introduce a new Australian Apprenticeships Incentive System from 1 July 2022 to support employers and apprentices in ‘priority occupations’
- Low- and middle-income tax offset increase by $420 for the 2021–22 income year. This will increase the base amount to $675 and the maximum amount to $1,500. The offset amount will be automatically worked out when the tax return is submitted to ATO
- A once-off, tax-exempt, cost of living payment of $250 will be made to six million eligible pensioners, welfare recipients, veterans, and eligible concession cardholders. This payment will be made in April 2022
- Tax deduction for COVID tests expenses (PCR & RAT) to attend work dating back to 1 July 2021. There’s also a relief for employers in that FBT will not apply where COVID tests are provided to employees in this context
- Super Guarantee Increase to Proceed – There was no indication that amending legislation would be introduced to repeal the existing law that will see the Super Guarantee rate increase to 10.5% (up from the current 10%) from 1 July 2022. Super Guarantee applies to an employee’s (and to some contractors) ordinary time earnings
- Temporary Reduction in Fuel Excise – This has been reduced by 50% for a period of six months. If passed on in full, it will result in the excise (and the price of fuel) being reduced by just over 22 cents per litre. This will take effect immediately, from 30 March 2022
- Relief for First Home Buyers – The Home Guarantee Scheme will expand by it being made available to 50,000 individuals/couples each year. This scheme helps those eligible clear perhaps the main hurdle in entering the housing market – saving for a deposit. Under the scheme, eligible first home buyers can with the assistance of the government obtain a loan to build a new home or purchase a newly built home with a deposit of as little as 5%.
For more information follow this link https://budget.gov.au/index.htm