This budget has been labelled by the Financial Review as a “Cash Splash Dash and Run to the Polls”, which I think sums things up beautifully. Here is a quick snap shot of some of the announcements that may be of benefit. Remember with all government announcements, they need to be passed in parliament and the devil is in the detail, which has not yet been released.
Skills and Training
Eligible small businesses will receive an additional 20% tax deduction on costs incurred on external training costs after 29 March 2022. This additional deduction would be claimable in the 2023 financial year.
Expansion of COVID-19 Grants
Further payments from certain State & Territory COVID-19 business support programs are to be classified as NANE (non-assessable non-exempt). NANE essentially means it does not attract income tax nor absorb taxes losses.
Fuel excise relief
From the 30th of March, a 50% reduction in the excise-equivalent customs duty rate will apply to petrol and diesel for the next six months. We should see this reflected at the pumps over the coming days.
Apprenticeships – Skills development scheme
Increasing the places by 2,500 in the 2022-2023 year along with the introduction of a new Australian Apprenticeship Incentive System.
Superannuation drawdown relief
The minimum annual pension drawdown has again been reduced by 50% for a further year until 30 June 2023.
Superannuation guarantee rate increase
From 1 July 2022 the superannuation guarantee rate will be increasing to 10.5%
The Low income Medicare threshold increases from 1 July 2021, so make sure your business software is updated at 1 July to ensure all these changes are reflected in your employees wage calculations.
Increase in LIMTO (Low and Medium Income Tax Offset)
For the 2022 financial year the offset has been increased to $1,500, which is a good reason to get your personal income taxes prepared early next year.
COVID 19 RAT tests
Tests purchased by individuals to attend a workplace will be tax deductible. Tests purchased by a workplaces to ensure their employees can attend work, will not be subject to fringe benefits tax. Remember to keep your receipts.
Cost of Living payment
In April 2022 eligible individuals will receive a one off $250 payment via Centrelink.
First Home Guarantee Scheme – additional places
The scheme which supports eligible first homebuyers to purchase a new or existing home with lower deposits has been expanded for an additional 50,000 places.
Changes to Paid Parental Leave (PPL)
Proposed changes include integrating Dad and Partner Pay to provide families with more choice and an increase into the income test for households to $350,000 per annum.