The Treasurer has delivered a pre-election budget that aims to drive Australia’s economic recovery in a post-pandemic, natural disaster, and conflicted international environment.
Our team has reviewed the budget and summarised the key measures that would be most relevant to our clients. If you have any questions about what these measures mean for you, please don’t hesitate to contact your adviser.
Overview
The government reinforced its continued focus towards economic recovery through creating job opportunities, spending on large infrastructure projects, and encouraging business investment.
The 2022 Budget measures are quite targeted with a clear focus on alleviating increases in cost-of-living, and supporting low and middle income earners, social security recipients and those looking to buy a home. Measures include cost-of-living relief payments, tax cuts, improved parental leave, small business incentives, and investing in healthcare and essential services.
Also, please note that these proposed measures are not yet law and could change as they make their way through the Parliamentary process.
Highlights
Retirees:
- Extension of the 50% temporary reduction in superannuation pension minimum drawdown rate to include the 2022-23 financial year
Individuals:
- A one-off $420 increase in the low and middle income tax offset for the 2021-22 financial year
- Paid parental leave
Small business:
- Small business tax deductions for skills and training programs and technology investment
Social security:
- One-off $250 payment in April 2022 to help ease the cost-of-living increases
Other:
- Temporary reduction in fuel excise by 22.1 cents a litre for 6 months
- Affordable housing and home ownership
- Digitalising trust income reporting and processing
- Extension of ATO Tax Avoidance Taskforce on multinationals, large corporates, and high wealth individuals
