Last night, Federal Treasurer Jim Chalmers handed down his first Labor Government Federal Budget, which primarily delivered on key election commitments in childcare, aged care, university and vocational education places and lowering prescription costs.
Below is a quick overview of highlights for business owners and individuals, as well as a link to download our full Federal Budget October 2022 Summary.
Businesses will be offered FBT and tariff exemptions for electric vehicles, as well as energy efficiency grants for SMEs. More business grants will be given non-assessable and non-exempt income status. Changes to import and export duties will apply to goods from Russia, Belarus and Ukraine, as well as a new Australia-Iceland tax treaty. A range of previously announced amendments have been deferred or will not proceed.
For individuals, there are significant benefits for older Australians and those with young children. From July 2023, Child Care Subsidy rates will lift from 85% to 90% for families earning less than $80,000. Targeted health, housing and education initiatives will provide cost relief for certain lower income households.
On the superannuation front, the Government will allow more people to make downsizer contributions, reducing the minimum eligibility age from 60 to 55 years of age.
Please contact us via the details below to discuss how these budget announcements could affect your business – for example timing your business upgrades and expenses to make the most of the new tax deductions.
Australian Federal Budget October 2022 Tax and Accounting Overview
To discuss any of these matters, please contact Rosenfeld Kant on (02) 9375 1200 or email Gary Williams, Raul Valois, Elias Makris or Sam Skurnik.
* Please note that this report contains proposals which have not yet been legislated, and so should be viewed in that context. We recommend you seek advice and do not take any specific action until the Government provides greater detail and certainty.