2022/23 Budget
Temporary Reduction in Fuel Excise
To help combat rising fuel prices, Australian’s will see a temporary reduction in the fuel excise of 50% from 30 March 2022 until 28 September 2022. The fuel excise has been reduced to 22.1 cents per litre, down from 44.2 cents pre litre, for both petrol and diesel.
Skills and Training Boost
If you are a small business owner you may be eligible to claim a deduction for a further 20 per cent on expenses that relate to external training provided to your employees. Eligible Training courses must be for employees within Australia and delivered by organisations registered in Australia. In-house training or courses for non-employees are not eligible for the deduction. The skills and training boost will apply to expenses incurred during the period 30 March 2022 until 30 June 2024.
Technology Investment Boost
If you are a small business owner you may be eligible to claim a deduction for a further 20 per cent on expenses and depreciating assets that are incurred with digital adaptation. This includes but is not limited to subscriptions to cloud-based services and cyber security systems. There is an annual cap of $100,000 for all entities eligible for the boost. The Technology investment boost will apply to expenses incurred during the period 30 March 2022 until 30 June 2023.
Cost of Living Payment
To help ease the cost of living the Australian Government has announced that eligible Australian residents will receive a one-off cost of living payment of $250 starting from 28 April 2022, exempt from tax. Eligible recipients include, but are not limited it to, those residents who hold a Commonwealth Seniors Health Card, Pension Concession Card and DVA Gold Cards.
To find out if you are eligible to receive this one off payment visit Services Australia.
Extending the temporary reduction in superannuation minimum drawdown rates
The Australian Government has extended the 50 per cent reduction of the minimum superannuation annual drawdown amounts until 30 June 2023.
Affordable Housing and Home Ownership
To support more Australians with purchasing or building their home sooner, the Australian Government will be increasing the number of guarantees to 50,000 places under the expanded New Home Guarantee Scheme. This is made up of:
• 35,000 places under the First Home Guarantee
• 10,000 places under the Regional Home Guarantee; and
• 5,000 places under the Family Home Guarantee
Places will be available to eligible first home buyers from 1 July 2021 to 30 June 2022. Eligible New Home Guarantee properties include:
• newly-constructed dwellings
• off-the-plan dwellings
• house and land packages
• land and a separate contract to build a new home
For information on how to apply visit NHFIC.
Primary Producers – increasing concessional tax treatment for carbon
Currently, profits made from selling Australian Carbon Credit Units (ACCUs) are treated as non-primary production and are not eligible for concessional tax treatment under the Farm Management Deposits scheme or tax averaging. From 1 July 2022 the Australian Government are proposing that profits made from selling ACCUs can be treated as primary production income under the FMD scheme.
For more information visit our blog on the Budget.