Mar 30, 2022 / News

Business Consulting / Taxation

2022 Federal Budget Insights

At the time of last year’s Budget, allowing ourselves the indulgence of thinking about a post-pandemic world was perhaps a little premature.  But maybe this time we really can. 

The forecast deficit for the 2022-23 year is $78 billion, and the current year’s deficit is expected to come in at $79 billion.  These are significantly lower than forecast in the two previous Budgets.  

Although some direct support measures continue, most have ceased.  However, deficits and debt with be with us for many years, but that is the price of averting what might have been far worse.

We set out a summary of the key measures announced, and what they mean for you. To see the full guide to the Budget, click here.

Personal Tax Low-and-Middle-Income Tax Offset increased by $420 to $1,500 for the 2021-22 year.	Small business Cashflow support and red tape relief.
Support for apprentices Extended wage support until 30 June 2022 for employing apprentices	Infrastructure spending Additional $10 billion funding for infrastructure projects in all states and territories.
Primary producers Proceeds from sales if Australian Carbon Credit Units can be a Farm Management Deposit.	Cost of living pressures Temporary halving of fuel excise tax, reduced by 22.1 cent/litre.
Employee share schemes Greater access, reduced red tape and reporting requirements.	Small business training boost 120% deduction for eligible training expenditure by businesses with group-wide turnover below $50 million.
Small business tech boost 120% deduction for investing in certain digital adoption expenditure by businesses with group-wide turnover below $50 million.	Patent box Expanded scope for special 17% company tax rate.
COVID tests Where work related, deductible and no FBT.	ATO taskforce Additional funding for audits of multinationals, large public and private groups, trusts, and high-wealth individuals.

 

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.