Who’s excited, it’s Budget time again!
Let us summarise our key take aways from this year for you (or check it out in more detail here).
- A $250 one-off cost of living payment to help eligible recipients with the higher cost o
f living pressures. The payments will start rolling out in April 2022 and goes largely to taxpayers who are currently receiving a pension, welfare payment and Concession or Seniors Card holders. This is expected to benefit over 6 million Aussies!
- An increase to the Low and Middle Income Tax Offset (LMITO). All taxpayers with taxable income of $126,000 or less will receive a further $420 on top of their usual LMITO, that means up to $1,500 tax relief for some people. The $420 is across the board regardless of whether you would have received the full LMITO. This is expected to benefit over 10 million Aussies!
- There has been a slight increase to the Medicare levy thresholds for low-income earners.
- Covid-19 tests used in order to attend a place of work will be tax deductible.
- Reduction in fuel excise for six months. This expected to reduce the cost of fuel by up to 22c per litre. Although, some would argue that as this excise is used to fund infrastructure projects, maintenance and improvements, they will need to get this money from somewhere else.
- An extension to paid parental leave. 20 weeks of paid parental leave, shared between eligible working parents, or the full amount if you are a single parent.
- Skills and Training boost. Small and medium businesses will be able to claim an additional 20% of expenditure on external training courses provided to employees. Meaning a deduction of $120 for every $100 spent.
- Technology investment boost – Small and medium businesses will be able to claim an additional 20% of expenditure on business expenses and depreciating assets that support their digital adoption. Think portable payment devices, cyber security system and subscriptions to cloud based services.
- Boost to the apprentice schemes, providing $5,000 payments to apprentices over 2 years and extending subsidies of up to $15,000 for employers who take them on.
- PAYG Instalments – from 1 January 2024 there is a proposal to calculate PAYG instalments based on businesses current performance not how much tax was paid the previous year. This information would be pulled from your businesses accounting software.
Other items of interest
- Government has committed $9.9 billion to increase Australia Cyber Security defences.
- Increase support for flood affected communities, which is expected to be in excess of $6 billion.
- $1.3 billion for prevention, intervention and support services for women and children who are the victims of domestic abuse.
- $23 million will be allocated to families who have experienced miscarriage or stillbirths.
- Housing affordability assistance by doubling the Home Guarantee Scheme to 50,000 places and $2 billion increase through the National Housing Finance and Investment Corporation.
- Additional $80 million to support small and medium businesses establish their export markets.
That’s about it, the major points as we see it anyway. If you’re looking for more, check out the ATO website!
Fine print: Some of these changes are still making their way through the legal red tape and may not be reflected on the site just yet.