Federal Budget 2022/23 – Individuals, Business & Super – Most Relevant Items

By March 31, 2022Uncategorized

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

The material and contents provided are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional accounting advice should be obtained. We are here to help, contact us today: admin@theCAgroup.com.au

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