On Tuesday night Federal Treasurer Josh Frydenberg handed down the Budget 2022-23, which is safe and ballot box friendly with a focus on jobs, cost of living, homeownership and health.
Key initiatives include:
- 6 month, 50% reduction in fuel excise
- $420 cost of living tax offset for low and middle income
- $250 economic support payment to some social security payment recipients
- $120 tax deduction for small businesses on every $100 spent on training employees and digital adoption
But, it is also a Budget that drives digitisation. Not just to support innovation but to streamline compliance, create transparency and more readily identify anomalies. Single touch payroll was the first step, the PAYG instalment system, trust compliance and payments to contractors are next.
Beyond compliance, accountants and advisers are uniquely positioned to assist clients to capitalise on the benefits of the Government’s push toward innovation and investment in new technology. Not just the $120 tax deduction for every $100 spent on training employees and digital adoption, but also the expansion of the patent box tax concessions. There are opportunities for those pushing boundaries.
Key economic highlights include:
- On the economic front, Australia’s unemployment rate is at 4%: the lowest rate in 48 years with the rate forecast to reach 3.75% in the September quarter.
- Real GDP is forecast to grow by 4.25% in 2021-22, by 3.5% in 2022-23 and by 2.5% in 2023‑24.
- The deficit for 2022‑23 is expected to be $78 billion or 3.4% of GDP. Gross debt as a share of the economy is expected to peak at 44.9% of GDP at 30 June 2025 (5.4% lower and 4 years earlier than projected at MYEFO).
Get the right advice
To discuss the Federal Budget and its potential impact on your individual circumstances or business call PPT’s friendly team on 5331 3711.
DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.