Pre-election Budget…you bet it is!

In late March, Simon Byers, CPA & Partner of our Prahran office, gave us his thoughts on the announced Budget 2022…

In March 2022, Treasurer Josh Frydenberg handed down a budget that was quite obviously targeted at winning votes prior to the May 2022 federal election. The thing is, Labour has already come out & said they would be carrying out all the same measures announced by the Government – & possibly more! So, enjoy the below summary I’ve whipped up for our Highview clients & community as just about everyone wins. In the short term that is…

Budget 2022 in Summary: What’s in it for you?

INDIVIDUALS

  • The Low & Middle Income Tax Offset (LMITO) of $1,080 will be increased by a cost of living offset of $420 for the 2021-2022 income year;
  • Fuel excise has been halved from 44.2c to 22.1c per litre for 6-month period ending 28 September 2022;
  • Paid Parental Leave Pay will be changed from 18 weeks for one parent & two for the other parent to a combined 20-week payment;
  • There will be a one-off income tax-exempt payment of $250 paid to eligible pensioners, welfare recipients, veterans & eligible concession card holders paid in April 2022;
  • The Home Guarantee Scheme has been extended to 50,000 places per year for the next three years starting 2022-23.

BUSINESSES

  • Over the next 5 years new apprentices will get a $5,000 payment for commencing an apprenticeship & businesses will enjoy up to $15,000 worth of wage subsidies per apprentice;
  • Small to Medium Businesses (SME’s) will get an additional 20% deduction for the cost of external training courses provided to employees;
  • Expenditure on digital adoption will also get a bonus 20% deduction. Items such as portable payment devices, cyber security or subscriptions to cloud based services are included in this;
  • There will be a reduction in the disclosure requirements under The Corporations Act for employee share schemes. This enables Australian businesses to compete with overseas businesses;
  • Unfortunately, no announcements around the Instant Asset Write-Off or the loss carry back tax offset occurred. Also sadly, not much announced to help businesses attract overseas talent to help with our skills shortage.

To wrap it up…

It’s a still a 12 month wait until budget night 2023, so us economic nerds have a bit of a wait between drinks this next year.

If you have a business & have any queries from the March announcements, please reach out to your trusted Highview advisor. We’re here to help you navigate all items that affect you & your business moving forward. If you’re an individual & want to sit down with one of our great financial planners’ then please get in touch.

All the best for the rest of 2022! Simon Byers CPA & Partner Highview Accounting & Financial

Posted on