Updated: Apr 8, 2022
On 29 March 2022, the Treasurer Josh Frydenberg delivered the 2023 Federal Budget. We were glad to see there were not too many major changes. Please find below a summary of some of the changes that might effect you.
Low & Middle Income Tax Offset
The Low & Middle Income Tax Offset has been increased for the 2022 financial year to $1,500, up from $1,080 in 2021. This is a good incentive to get your 2022 tax returns done as soon as possible to obtain any refund available. It is important to note that the offset will be finishing in 2022 so will not be available in 2023.
Tax Deduction for COVID Tests
The government has confirmed that the costs of taking a Covid test will be tax deductible if it is a requirement to attend a place of work. Please make sure to keep receipts for any tests done.
120% Tax Deduction for Training & Technology
Effective from 7:30pm on 29 March 2022, any amount spent on training or technology will receive an additional 20% tax deduction on top of the normal claim. Therefore, if you spend $10,000 on staff training you will effectively get a tax deduction of $12,000 in the 2022 tax return. This incentive will remain in place until 30 June 2024. This incentive will be available for small & medium businesses with turnover of under $50 million.
Minimum Pension Draw Downs
The Government has extended the 50% reduction of minimum pension drawdowns until 30 June 2023. Therefore, the following rates will continue to apply for this year and next.
Cost of Living Payment
The Government has announced a one off $250 cost of living payment for eligible recipients. Eligible recipients will be those receiving most Centrelink pensions and allowances.
Reduction in Fuel Excise
The Government has also announced a reduction in Fuel Excise to commence from midnight on 30 March 2022. This should see fuel prices decreases over the next couple of weeks.
Boosting Apprenticeship Commencements Wage Subsidy
Any employer who takes on an apprentice of trainee up until 30 June 2022 can gain access to:
50% of the apprentices wages in the first year up to $7,000 per quarter per apprentice
10% of the apprentices wages in the second year up to $1,500 per quarter per apprentice
5% of the apprentices wages in the third year up to $750 per quarter per apprentice
How Can I Speak with an Accountant to Understand More?
You can book an appointment to speak with an Accountant by calling our Office on 02 4340 2415 or sending an email to firstname.lastname@example.org