On Tuesday night, Federal Treasurer Josh Frydenberg handed down the 2022–23 Federal Budget, which puts forward a number of measures aimed at addressing cost of living pressures and boosting investment in innovation and employee skills.
Below is a quick overview of highlights for business owners and individuals, as well as a link to download our full 2022-23 Federal Budget Summary.
Businesses are set to benefit from tax incentives to support digital adoption, cyber security and investment in the skills of their employees. A lower GDP uplift rate for PAYG and GST instalments has also been proposed to support cash flow for SMEs in particular. The 6-month cut to the fuel excise will also provide a welcome relief for businesses reliant on fuel related expenditures.
Individuals are slated to receive cost of living relief in the form of an increased Low and Middle Income Tax Offset for those earning up to $126,000 of $1080 and a further $420 for the current year, a one off $250 payment for welfare recipients and pensioners, and individuals will also benefit from the 6-month fuel excise relief will help with cost of filling up the car each week.
On the superannuation front, the 50% reduction of minimum drawdown requirements for account-based pensions will be extended for an additional year.
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.
Federal Budget 2022-23 Summary
* 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.