Here’s what you need to know about Federal Budget 2022-23

With Treasurer Josh Frydenberg’s announcement on the 2022 – 2023 federal budget, in the most uncertain times of the decades. The cost of living has been a major centrepiece, with tax breaks, petrol pricing (soaring high) and pension payments on the agenda.

Well, the budget focuses on the short-term cost of living and provides a WIN – WIN situation for small business owners in Australia. Our team of accountants have analysed the budget, and here is really what you should factor in from the federal budget?

Highlights of “Federal Budget 2022-23” for Low – Middle – Income earners to Social Security recipients.

• Low to Middle income earners receive a tax offset of $420!
  For individuals or families earning less than $126, 000 a year can access a once off payment of $420 during tax time, on top of $1080 threshold. This means, individuals will be entitled to an offset of $1500, while for couples it would be $3000.
• The Fuel Excise takes a cut from 44.2 cents down to 22.1 cents { The Federal Budget 2022-23}
  Good news? For the next 6 months, the tax on your petrol (aka fuel excise) will be halved to 22.1 cents a litre, for the next six months! As per the treasurer, a family with two cars (filling up their petrol tank once a week) will save roughly about $700 in the next 6 months.
• Social security recipients receive a one – off cash payment of $250 { The Federal Budget 2022-23}
  Aiming to ease the cost of living pressures, given these payments are targeted at lower income earners. A once – off payment of $250 will be provided to veterans, job seekers, carers, concession holders and self – funded retirees.

Highlights for business owners to home owners with The Federal Budget 2022-23

• Are you a business owner? then here are some interesting highlights for you.
  For small businesses, there is certainly a win-win situation, where the Australian government addresses challenges on improving small business digitalisation.
• A booster shot of $1 billion in technology & upscaling workforce { The Federal Budget 2022-23}
  According to the 2022 survey results by the CPA, technology is critical for the growth of small businesses. Moreover, due to limited investment, and skills, small business owners have the lowest level of digital capacity in the Asia pacific region (Survey results, 2022). The federal budget introduces a new incentive for small business owners – With every $100 spent on digital technology, small businesses will receive a tax deduction worth of $120.
• Upscale your work force and receive $120 on tax deduction { The Federal Budget 2022-23}
  With every $100 spend by small business on training and upscaling their workforce. They will be entitled to receive a $120 tax deduction. Encouraging small businesses to upscale their workforce, and provide better opportunities to grow as an organisation.

Are you a Director? Or do you own a company? then here’s a key highlight for you

If you are applying for your director ID, or managing your registry transactions. The federal budget 2022 indicates that for the next THREE years (starting from 1st July 2023), there will be no search fees on the Australian Business Register website.

• New tax regime introduced – Patent box will be expanded to the agriculture and low emission technology sectors
  >With an effective tax rate of 17 per cent for eligible patents in the agriculture and low- emission technology-based sectors. Applying to only the profits generated from the patents (that are eligible conducted) in Australia. With the anticipation, of an increased payment to the ATO of approx $13.4 billion and a decrease in receipts by $10 million.
• What about Cybersecurity? Does that concern Australian businesses?
  Although a national security issue, with the increasing likelihood of cyberattacks on the Australian businesses. The Australian government plans to invest $9.9 billion in cyber security. This simply means, protecting businesses from online theft and money fraud.
• Do you dream of buying or investing in your home? Or are you a first home buyer?
  While the housing prices are booming across the country, the 2022 federal budget focusses on supporting people to fulfil their dream of buying their own home. While there are limits on the income earners and the property value (on applying the loan for). The “affordability housing” scheme is capped at $200,000 annually for couples and $125,000 for individuals.
  The federal budget 2022 expands the Home Loan Guarantee Scheme to 35,000 places a year (for first home buyers), while 10, 000 are allocated to Regional Home Guarantee. And, the rest 5000 is allocated for single parents under the scheme of 5,000 places a year.
  According to Mr Ulah, “As loans that have a low deposit, are known to have a higher Loan to value ratio, they are considered to be riskier, this may cause an increase in interest rates. Causing a rise in repayment rates”
• Looking for work? Here are some interesting highlights for the workforce industry
• As the Australian government announces a reboot scheme of $46.8 million focussing on the age group 15 to 24 years old into workforce. Targeting individuals who have had a history of illicit substances or have been homeless. The budget will provide opportunities for the young workforce to make an independent living for themselves.
• With an incentive of $2.4 billion to target and focus on Australia’s workforce skills shortages. Apprentices in a high demand-based industry, will receive an up to $5000 payments in cash for up to TWO years of their training.