The Federal Budget 2022-23

“The largest and fastest improvement to the budget bottom line in over 70 years.” Treasurer Josh Frydenberg

?Last night’s budget was a budget that fell on the cautious side of the ledger. With a background of very low unemployment, a war in the Ukraine, ongoing Pandemic implications, a looming election and natural disasters, the Treasurer seems to have focused on Australia’s strong economic position with a boost to help with cost-of-living pressures for everyday Australians.

Jobs growth is tipped to remain strong, with unemployment at 3.75 per cent next financial year and wages growth at 3.25 per cent nationwide – outstripping a predicted three per cent CPI increase. Real GDP growth is seen as easing slightly to 3.5 per cent.

However, Tasmanians will have to wait for the upcoming federal election campaign to find out what fresh big-ticket policies, tax cuts and spending pledges might benefit them locally.

?Local Snap Shot –

·????????$100m in new funding for the Great Eastern Drive project in the seat of Lyons

·????????The Marinus Link electricity interconnector project was mentioned favourably, but there was no new federal funding.

·????????An extra $5m has also been committed to the Bicheno Recycled Water Scheme

·????????$13.73m in extra funding has been allocated to deliver the Don Irrigation Scheme

·????????Motorists will benefit from a 22 cent per litre cut in fuel excise predicted within a fortnight which will cut the cost of a tank of petrol by between $8 and $10 for the average family sedan.

·????????And there will be one-off $420 cost of living tax offset for more than 10 million low-and-middle income earners and a one-off $250 cost of living payment for six million welfare recipients.

·????????There were no new tax cuts.

·????????Expansion of Veteran wellbeing program and youth mental health nationally, including Tasmania

·????????$800,000 budgeted for mental health support for the Devonport community

·????????Also among the new announcements were generous tax concession for small business for training and investments in digital technology.

·????????Another notable funding commitment is one the Federal government announced earlier this year - $800m to strengthen the country’s position in Antarctica

Individuals

·????????The low and middle income tax offset, available to taxpayers earning less than $126,000 per year, is here for one more year, and will be increased by $420. This is claimed via your 2022 tax return, if eligible.

o??Less than $37,000 - $675

o??$37,000 to $48,000 – increase 7.5 cents per $1, capped at $1,500

o??$48,000 and $90,000 - $1,500

o??$90,000 and $126,000 - reducing from maximum at 3 cents per $1, tapering to $420

o??Above $126,000 - $0

·????????Individuals who are currently in receipt of an Australian government allowance or pension will receive a one-off payment of $250 in April 2022 to ease the cost of living pressures. Certain concession card holders will also get the payment.

·????????Costs of taking a COVID-19 test to attend a place of work will be tax deductible for individuals. This measure will be retrospective to 1 July 2021.

·????????Some minor changes are being made to the Paid Parental Leave scheme, intended to be more flexible in allowing leave to be shared between 2 parents as they choose, and allowing single parents access to the full 20 weeks.?

·????????A temporary reduction in fuel excise of 50% will be implemented with immediate effect. This will reduce the fuel excise component of fuel prices by 22.1c per litre. This will apply to all petroleum-based products except aviation fuel and will apply until 28 September 2022.

Businesses

• Additional deduction of 20% for expenditure on external training for employees (in Australia and can be online) for businesses with a turnover of less than $50 million.?
• Additional deduction of 20% for expenditure supporting digital adoption for businesses with a turnover of less than $50 million.
• The GDP uplift factor applying to PAYG instalments will be capped at 2% for businesses with turnover of less than $50 million.
• Access to the employee share scheme concessions for unlisted companies will be expanded so that participants can invest up to $30,000 per year or any amount, if it allows them to immediately take advantage of a planned sale or listing.
• A plan to allow businesses to report taxable payments reporting system data on the same lodgement cycle as their activity statements, with effect from 1 January 2024.?
• The Boosting Apprenticeship Commencements wage subsidy will be extended until 30 June 2022 (previously ended on 31 March 2022). Businesses of any size can claim the wage subsidy. Eligible businesses will be reimbursed up to 50% of an apprentice or trainee's wages of up to $7,000 per quarter for 12 months.

The information provided here is general in nature. As always, we recommend any business seek independent professional legal and financial advice, as every case is different. Whilst every care has been taken to compile this report, from a number of sources, we encourage all readers to make their own investigations and we accept no reasonability for errors and or omissions or reliance on information contained herein.

With over 140 years’ experience in debt collection and credit management in the Tasmanian marketplace, we have the right people, tools, and knowledge to make a difference to your bottom line. Get your debts under control quickly and easily by engaging our services. Contact us today.

Website - www.tascol.com.au/contact-us/

Email – [email protected]

Phone - 03 6213-5555

Sources - https://budget.gov.au, The Mercury, WLF, ABC, The Federal Treasurer?