The 2022 Federal Budget focused largely on supporting low and middle income earners, cost of living pressures, health, social security recipients and those looking to buy a home.
Clearly a pre-election budget; the budget builds upon Australia’s strong economic recovery and gives back to those in need.
The economic environment continues to be volatile, and this should be kept in mind when reading the budget announced measures.
Key Highlights Include:
- A 6 month, 50% reduction in fuel excise with effect from midnight Budget night
- A $420 cost of living tax offset for low and middle income earners from 1 July 2022
- A one-off $250 economic support payment to some social security payment recipients
- For small business, a $120 tax deduction for every $100 spent on training employees and digital adoption
- A new Skills and Training Boost will provide a new 20 per cent bonus deduction for eligible external training courses for upskilling employees from Budget night.
- Extending the 50% reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.
Importantly, it is also a Budget that drives digitisation. Not just to support innovation but to streamline compliance, create transparency and more readily identify anomalies.
Single touch payroll was the first step, the PAYG instalment system, trust compliance, and payments to contractors are next.