Federal Budget 2022 – 2023
Federal Budget 2022 - 2023
Last night, Treasurer the Hon Josh Frydenberg MP brought down the 2022-23 Budget. The Budget’s themes support the rebuilding of the economy by leveraging large infrastructure and sovereign projects, guaranteeing essential services, addressing cost of living pressures and building a more secure and resilient Australia. This includes a number of programs that support significant investment across regional Australia.
For more information about the Budget please go to https://budget.gov.au/.
- 2022-2023 Budget Papers
- Treasurer’s speech
- Deputy Prime Minister’s media releases on regions and infrastructure
- Women’s Budget Statement
- Ministerial media releases
The Regional Ministerial Budget Statement 2022-23: A stronger future for regional Australia was also released, you can go to: www.infrastructure.gov.au
The key numbers:
- Deficit of $78 billion for 2022-23
- Net debt predicted to increase to $865 billion by June 2026
- GDP growth forecast of 3.5% for 2022-23
1. 50% reduction in fuel excise for 6 months
Fuel excise is set to be cut in half for 6 months from 30 March 2022. This will equate to 22.1 cents per litre in excise for petrol and diesel. The ACCC will monitor retailers to ensure the excise reductions are passed on at the pump.
2. One-off cost of living tax offset
There will be a one-off $420 increase to the low and middle income tax offset (LMITO) for 2021-22 income tax year. The combined $420 and LMITO will give eligible taxpayers a tax reduction of up to $1,500 for a single income household, or $3,000 for a dual income household.
3. Small business digitalisation
New $1 billion Technology Investment Boost to encourage small businesses to go digital. Small businesses with an annual turnover less than $50 million will be able to deduct a bonus 20% of the cost of expenses and depreciating assets that support digital uptake. This includes portable payment devices, cyber security systems or subscriptions to cloud-based services. A $1 spend will equate to a $1.20 deduction.
4. $250 cost of living payment to welfare recipients
The Government is providing a new one-off, income tax-exempt payment of $250 to help with increases in the current cost of living. It will be paid automatically to all eligible pensioners, welfare recipients, veterans, and eligible concession card holders in April 2022.
5. 50% minimum super drawdown extended
The Government has extended the 50 per cent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.
6. Employee Share Schemes access expanded
The Government will expand access to employee share schemes and reduce red tape.
7. STP data shared with states and territories
$6.6 million over the forward estimates period is marked for the development of IT infrastructure to allow the ATO to share single touch payroll (STP) data with State and Territory Revenue Offices on an ongoing basis. This would enable payroll tax returns to be pre-filled with STP data, to reduce compliance costs for businesses.
8. Small business training bonus
Small businesses with an annual turnover less than $50 million will have access to a new bonus 20% deduction for the cost of external training courses delivered to their employees by providers registered in Australia. A $1 spend will equate to a $1.20 deduction.
9. $2.8bn for apprenticeships
New $2.8 billion investment to increase take up and completion rates for apprenticeships including $5,000 payments to new apprentices and up to $15,000 in wage subsidies for employers who take them on. And lastly, while this won’t have an immediate impact for members, it is also worth noting that the Federal Budget includes $37.9 billion for regions and transport infrastructure to unlock regional opportunities and invest in rail projects. A further $7.4 billion will also be invested into water infrastructure including $6.6 billion in Queensland