2022 Federal Budget Summary
No significant changes (Pre Election) 2022 Budget
With a Federal Election due in the next 8 weeks, the Morrison Government has just made its bid for re-election with the following headline announcements in its Federal Budget released on Tuesday, 29 March 2022:
Temporary Full Expensing finishing on 30 June 2023. If your business turnover is less than $5 billion, you can deduct the total cost of eligible depreciating assets of any value.
Temporary Loss Carry-Back is finishing on 30 June 2023.
Petrol tax slashed by 22 cents per litre for 6 months from Budget night.
10 million low and middle-income earners will receive a once-off bonus tax rebate of $420- giving a total of $1,500 to eligible individuals after they lodge their 2022 Tax Return.
A $250 one-off payment to six million pensioners and welfare recipients.
No changes were announced to tax or superannuation laws, which was very much welcomed.
Millions of small businesses (annual turnover of less than $50 million) will be eligible for the new Technology Investment Boost, which offers a bonus 20% tax deduction for costs such as online sales platforms, cloud computing, portable payment devices and cyber security systems.
Based on our analysis, the winners appear to be:
Tradies- New wage subsidies to employ apprentices.
Low to middle-income taxpayers - An increase to a tax offset available after they lodge their 2022 Tax Return.
Small Business - New 120% tax deductions will be available for training for employees and for digitising a business.
Please refer to the attached as there are several key areas we would like to make you aware for –
1. Small Business Owners (turnover under $50 million)
2. Business Owners