This is a safe, ballot box friendly Budget as expected with a focus on jobs, cost of living, home ownership and health. Some of the highlights of last night’s Federal budget include;

  • A 6-month, 50% reduction in fuel excise with effect from midnight Budget night. That is, the current 44.2 cents per litre excise rate will reduce to 22.1 cents per litre from Budget night
  • A $420 cost of living tax offset for low and middle income earners from 1 July 2022. The low and middle income tax offset (LMITO) currently provides a reduction in tax of up to $1,080 for individuals with a taxable income of up to $126,000. For the 2021-22, the LMITO will be increased by $420, increasing it up to $1,500.
  • A one-off $250 economic support payment to some social security payment recipients. These include recipients of the Age pension, Parenting payment, Jobseeker payment, Youth Allowance and Commonwealth Seniors Health Card holders among others.
  • For small business, a $120 tax deduction for every $100 spent on training employees and digital adoption. The technology boost will be available to small businesses with an aggregated annual turnover of less than $50 million. An annual expenditure cap of $100,000 will apply to the boost.
  • For Self-managed super fund pension members, an extension of the 50% reduction in minimum pension payments for the 2022-2023 year.
  • Apprentice wage subsidy support extended. The Government announced the extension of the: Boosting Apprenticeship Commencements wage subsidy, and Completing Apprenticeship Commencement wage subsidy. As well as additional funding for a new Australian Apprenticeships Incentive System from 1 July 2022 in “priority occupations”.
  • ‘Patent Box’ tax regime extended to agriculture and emissions. The Patent Box tax regime was announced in the 2021-22 Budget for the medial and biotech industries. The Government has announced an extension of the regime to: Technology focused innovations to reduce emissions and Practical, technology focused innovations in the Australian agricultural sector.

For further information on the Budget measures, please contact our friendly staff.

 

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