10 budget items you need to know about

By April 6, 2022 August 5th, 2022 All
BUDGET ITEMS
BUDGET ITEMS

Here are some budget items you should know

key takeaways from the 2022-23 Federal Budget Items our team at MBC Group Services thinks you need to know.

1. Super Guarantee rate will rise to 10.5% for 2022-23.

2. The 50% reduction of the minimum superannuation pension drawdown requirements will be extended for the 2022-23 income year.

3. The low and middle-income tax offset is being increased for the 2022 financial year. This is NOT a cash refund. It is a reduction against your calculated tax liabilities and adjusted for in your individual tax return.Over earnings between $48,001 and $90,000, an individual is eligible for an offset of $1,500, which phases out to $126,000.

4. Individuals offered an employee share scheme may invest up to $30,000 in unlisted companies per year (accruable for unexercised options for up to 5 years) plus 70% of dividends and cash bonuses. If participants are able to invest, they take advantage of planned sales or listings.

5. Costs incurred by individuals for undertaking Covid 19 tests to attend a place of work will be deductible from 1 July 2021.

To Be Continue.

6. 20% of external training expenses can be deducted as business expenses. The deduction is available from March 29 to June 30, 2023.

7. A temporary reduction in the 44.2 cents per liter fuel excise for the next six months. Businesses that claim fuel tax credits will see a drop in their rebate (as the rebate is already a partial refund of the excise tax)

8. The government will make a one-time $250 cost of living payment in April 2022, and concession card users will be eligible.

  • Age Pension
  • Disability Support Pension
  • Parenting Payment
  • Carer Payment
  • Carer Allowance (if not in receipt of a primary income support payment)
  • Jobseeker Payment
  • Youth Allowance
  • Austudy and Abstudy Living Allowance
  • Double Orphan Pension
  • Special Benefit
  • Farm Household Allowance
  • Pensioner Concession Card (PCC) holders
  • Commonwealth Seniors Health Card holders
  • Eligible Veterans Affairs payment recipients and Veteran Gold card holders.

9. The Government has announced that it will expand the Home Guarantee Scheme to make available up to 50,000 places each year, including 10,000 places for a new Regional Home Guarantee open to non-first home buyers. The scheme allows first home buyers to purchase their first home with a deposit of 5%.

10. New patents registered sectors are:

  • medical and biotechnology
  • some agricultural and veterinary chemical products and carbon emission reduction technologies will be concessional tax at 17%

If you wish to know more, please get in touch with your Account Manager at MBC Group Services to discuss the implications of the 2022-23 budget on your business. Email: mbco@mbco.com.au or Tel: 02 63620988.