Federal Budget 2022-23

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On Tuesday, 29 March 2022, Treasurer Josh Frydenberg handed down the 2022-23 Federal Budget.

The major tax-related measures announced included:

PERSONAL TAXATION

Low income offset

The low and middle income tax offset (LMITO) will be increased by $420 for 2021-22 income year so that eligible individuals will receive a maximum LMITO benefit up to $1,500 for 2021-22.

Personal tax rates

The Government did not announce any personal tax rates changes. The Stage 3 tax changes commence from 1 July 2024, as previously legislated.

BUSINESS TAXATION

Deduction boosts for small business: skills and training and digital adoption.

External training courses

An eligible business (turnover less than 50M) will be able to deduct an additional 20% of expenditure incurred on external training courses provided to its employees.

The boost will apply to eligible expenditure incurred from 29 March 2022 until 30 June 2024.

Digital adoption

An eligible business (turnover less than 50M) will be able to deduct an additional 20% of the cost incurred on business expenses and depreciating assets that support its digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services.

The boost will apply to eligible expenditure incurred from 29 March 2022 until 30 June 2023.

TAX COMPLIANCE

The Government will provide more funding to the ATO’s Tax Avoidance Taskforce, which undertakes compliance activities targeting trusts, high wealth individuals and tax avoidance schemes etc.

SUPERANNUATION

Superannuation pension drawdowns

The temporary 50% reduction in minimum annual payment amounts for superannuation pensions and annuities will be extended by a further year to 30 June 2023.

Super Guarantee no change to legislated rate rise to 10.5% for 2022-23

If you need to discuss any of the items above, please contact our office.

Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.


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I would like to say that Loewy Consulting Partners provide prompt and helpful advice in processing my income tax and in dealing with the Australian taxation office and highly recommend their services to my colleagues. The staff are friendly and always available to assist with knowledgeable advice.

Dr Robert Mansberg
MB BS FRACP, Consultant Physician in Nuclear Medicine, Concord and Nepean Hospitals, Clinical Lecturer, Discipline of Imaging, University of Sydney