Australian Federal Budget 2022-23

On Tuesday, 25 October 2022, Treasurer Jim Chalmers handed down the 2022-23 October Federal Budget, his 1st Budget.

PERSONAL TAXATION

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

• The income threshold for the Commonwealth Seniors Health Card will be increased to $90,000 for singles and $144,000 (combined) for couples.

BUSINESS TAXATION

Digital currencies not foreign currency

• The Government will introduce legislation to clarify that digital currencies (such as Bitcoin) to be excluded from the Australian income tax treatment of foreign currency and maintain the current tax treatment, including the CGT treatment where they are held as an investment.

Electric Cars

• Electric vehicles under the luxury car tax threshold will be exempt from fringe benefits tax.

SUPERANNUATION

Super downsizer contributions eligibility age reduction to 55 confirmed

The proposed reduction in the eligibility age will allow individuals aged 55 or over to make an additional non-concessional contribution of up to $300,000 per contributor from the proceeds of selling their main residence outside of the existing contribution caps. Either the individual or their spouse must have owned the home for 10 years.

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.