On Tuesday night the annual federal budget was released, but what changes did it promise and what does that mean for you as an individual or business owner? We’re determined the key tax and business points from the budget, read below to find out more.
Budget Promises: Individuals
There’s relief for drivers, as the the fuel excise has been reduced 50% for six months starting 30 March 2022. This will save individuals approximately $13 when they fill up their car. Those on Centrelink and Veteran Benefits, as well as eligible concession card holders, will also receive a one off $250 payment in April 2022.
Additionally, if you earn less than $126,000, the $1080 Low and Middle Income Tax Offset (LMITO) is extended for a further year period, with a further $420 for the 2022 financial tax year.
Finally, the Morrison government has extended the Home Guarantee Scheme, to another 50,000 places per year for the next 3 years. This includes:
- 35,000 for the First Home Guarantee
- 10,000 for a new Regional Home Guarantee
- 5000 for the Family Home Guarantee.
Budget Promises: Business Owners
In terms of businesses, the government has pledged a 20% deduction for employee training courses. Another 20% additional deduction is planned for expenses related to digital support and integration. This includes cloud services, cyber security and portable payment services.
The ATO’s Tax Avoidance Taskforce has been extended for an additional two years, until 30 June 2025. It is estimated that the extension of the taskforce will increase receipts by approximately $2.1 billion over the additional period.
Superannuation Changes
There will be a 50% reduction in minimum income stream payments for account-based pensions, extended to the end of 2023.
For more information on how the budget changes will impact you, call us on 1800 106 141, or make an appointment with one of our staff by clicking below: