Federal Budget 2022/23 – Individuals, Business & Super – Most Relevant Items
We have taken out the relevant components the Federal Budget 2022/23 and summarised in a concise format avoiding all the unnecessary noise found in other newsletter subscriptions.
To further discuss opportunities or determine whether any of these areas would impact your affairs, please give us a call.
INDIVIDUALS | Details | Effective |
Low and middle income tax offset | Currently provides a reduction in tax of up to $1,080 for individuals with a taxable income of up to $126,000, will now reduce tax by a further $420 (total up to $1,500). This extra amount will be called a “cost of living tax offset” | From 1 July 2022 when lodging 2022 Tax Return |
$250 One-Off Payment | individuals who are currently in receipt of Australian Government social security payments, including pensions. These payments will be tax exempt. | From April 2022 |
COVID Test Tax Deductions | Costs of taking a COVID-19 test to attend a place of work will be tax deductible for individuals and exempt from fringe benefits tax (FBT) | 1 July 2021 |
Paid Parental Leave | Up to 20 weeks paid leave (combined for both parents) will replace the existing system of 2 separate payments. Can be taken any time within 2 years of the birth or adoption of their child and the income eligibility test will be broadened. | Proposed from 1 March 2023 |
BUSINESS | Details | Effective |
Tax Exempt COVID-19 Business Grant status | Payments from additional state and territory COVID-19 business support grant programs will be tax exempt until 30 June 2022, unfortunately JobSaver and JobKeeper didn’t make the list. | 1 July 2021 |
120% Tax Deduction for external Training | Small and medium businesses (<$50M) will be able to deduct an additional 20% of expenditure incurred on external training courses provided to their employees. Must be delivered by an Australian entity and provided to employees in Australia or online. 2022FY expenses claimed in 2023FY Tax Return. | 7:30pm, 29 March 2022 to 30 June 2024 |
120% Tax Deduction for Digital Adoption | Small and medium businesses (<$50M) will be able to deduct an additional 20% on depreciating assets and business expenses supporting digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services. Annual cap of $100,000 will apply. 2022FY expenses claimed in 2023FY Tax Return. | 7:30pm, 29 March 2022 to 30 June 2023 |
Apprenticeship wage subsidy extended | Eligible businesses will be reimbursed up to 50% of an apprentice or trainee’s wages of up to $7,000 per quarter for 12 months. | Up to 30 June 2022 |
PAYG Instalments | Uplift rate that applies to pay-as-you-go (PAYG) instalments and GST instalments will be set at 2% for the 2022–23 income year. | 1 July 2022 |
Patent Box Tax Concessions | The Medical and Biotechnology Innovation Patent Box tax concessions (17% corporate tax rate) have been broadened to include Agricultural and Low Emission Innovation businesses. | 29 March 2022 |
SUPERANNUATION | Details | Effective |
Pension minimum drawdown rates | The halving of the superannuation minimum drawdown requirements for account-based pensions and similar products will be extended for a further year. | To 30 June 2023 |
