Federal Budget Update 2022-2023

Last night Treasurer Josh Frydenberg delivered his fourth Federal Budget with the focus appearing to be more on the short-term cost of living relief, with the Federal Election just around the corner.

Prime Minister Scott Morrison will be eagerly hoping that a halving of petrol excise will see prices at the pump plummet in the next fortnight!

Here’s how we see the changes:

1.Cost of Living Tax Offset – Improving on last year’s effort, the Government will increase the low and middle-income tax offset (LMITO) for the 2021-22 income year by $420.

• if you earn between $90,001 and $125,999 will receive $420 to $1500
• if you earn between $48,001 and 90,000 will receive $1500

 
2.Cost of Living Payment – The Government will provide a $250 economic support payment to eligible recipients in April 2022, including those who receive the age pension, support payments, jobseeker, youth allowance and Commonwealth Seniors Health Care Card holders

 
3. Self-funded retirees will be able to continue to choose to reduce their minimum pension drawdown amount by 50{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83}, with the measure extended for a further year to 30 June 2023.

4. Small Businesses don’t miss out either!  The Government is continuing its support of small businesses by introducing boosts for both skills, training and technology investment.

What they didn’t highlight!

• The Immediate Asset Write-Off which enables businesses to claim an immediate tax deduction for the cost of depreciating assets purchased, first used or installed ready for use is available until 30 June 2023.
• Superannuation Guarantee will increase to 10.5{b8e7c7f951a33340f874b6d86f318d9ec4412e46b7f65591a459ed670b119c83} from 1 July 2022.

To find out what this means for you, your business or your household please don’t hesitate to contact the team here at TTO. on 08 8211 9426