Well there was no slapping drama at the Federal Budget handed down last night (too soon 😉) but there was some cost of living relief and a fairly a-typical pre election budget. Here are the low highlights:
💲Low and Middle Tax Offset will increase from $1,080 to $1,500 for individuals (or $3,000 for couples). Taxpayers with incomes >$126,000 will NOT receive the additional $420. If eligible you will receive upon lodgement of your ITR.
💲Small Business Tech Investment Boost a 120% tax deduction for expenses and depreciating assets to support digital adoption (YAY!!! we are ALL IN to that!) capped at $100,000 p.a. (this might include cyber security systems, cloud based service subscriptions or portable payment devices). Available until 30/6/23 for small businesses with <$50m aggregated turnover (note for 2022 expenditure the deduction will be claimed in the 2023 year)
💲Small Business Tech Investment Boost a 120% tax deduction of the cost of eligible courses to train new employees, or to upskill existing employees. Must be for Aussie employees and delivered by entities registered in Australia. Available until 30/6/24 for small business <$50m aggregated turnover (note for 2022 expenditure the deduction will be claimed in the 2023 year)
💲PAYGI system modernised??? Instalments will be based on current financial performance and the GDP uplift factor will be reduced from 10% to 2%. Heads up this is just a timing benefit, the same amount of tax will still be payable. Commencing 1 January 2024 so quite some time away ...
💲Temporary fuel excise cut from 44.2 cents per litre to 22.1 cents per litre from 30/3/22 to 28/9/22. The ACCC will monitor the petrol retailers to ensure the full benefit of the reduced excise is passed to the consumer.
💲Cost of Living Payment a tax exempt amount of $250 will be provided to help eligible recipients with higher cost of living pressures. It will take place in April 2022 for certain pension and welfare recipients and concession card holders.
💲Extending the 50% temp reduction in superannuation pension minimum drawdown rates for account based pensions to 30/6/23. Why is this important? The minimum drawdown requirements determine the minimum amount of a pension that a retiree must draw from their superannuation in order to qualify for tax concessions. Given ongoing volatility, this change will allow retirees to avoid selling assets in order to satisfy the minimum drawdown requirement - PHEW cos the markets aren't so great right now, are you with us?!
💲Apprenticeships subsidy. Apprentices will get a $1,250 payment in high demand industries every 6 months from July for the first 2 years of their apprenticeship in priority skills areas, while their employers can access a 10% wage subsidy that will drop to 5% in the third year.
Well that is as good as it nets, haha. Calc-u-later!
Disclaimer: This blog is for general informational purposes only. For advice on your specific situation, please contact a tax professional, ie us 😊