An updated 2022/23 Federal Budget was handed down by Treasurer Jim Chalmers on the 25th of October 2022. As the first budget from the
new Labour Government, it includes an outline to deal with the current economic climate.
Despite an uncertain global economic environment, the Treasurer has lauded Australia’s low unemployment and strong export prices as the
reason for the 3.5% growth in the economy this current financial year.
The family-focused budget aims to help ease the cost of living through cheaper childcare, expanding paid parental leave, better aged care
and improved housing affordability.
We have compiled some of the more important key points of this updated 2022/23 Federal Budget.
"The family-focused budget aims to
help ease the cost of living through cheaper childcare, expanding paid parental leave, better aged care and improved housing
affordability."
Individuals:
Cheaper Childcare:
From 1 July 2023, the Child Care Subsidy rates will lift from 85% to 90% for families earning less than $80,000. Subsidy rates will then
taper down 1% for each additional $5,000 of income until it reaches 0% for families earning $530,000.
Pensioners:
The amount pensioners can earn in 2022-23 will increase by $4,000 before their pension is reduced, supporting pensioners who want to
work or work more hours without affecting their pension.
Paid Parental Leave (PPL) Scheme:
To be extended from 1 July 2023 so that either parent can claim the payment. From 1 July 2024, the scheme will be expanded by two
additional weeks a year until it reaches a full 26 weeks from 1 July 2026.
Commonwealth Seniors Health Card:
The income threshold will be increased from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.
Businesses
Self-Assessment of Effective Life Of Intangible Depreciating Assets will not proceed:
The government will no longer proceed with what it announced in the 2021-22 budget which was that taxpayers would be allowed to self
assess the effective life of intangible depreciating assets (e.g. intellectual property and in-house software).
Expansion of Non-Assessable COVID-19 Government Grants:
A number of state grants relating to the COVID-19 pandemic will be non-assessable, non-exempt (NANE) income for tax purposes. Some
of the grants listed that you will be exempt from paying tax on include: Business Costs Assistance Program Four – Construction (Vic),
Licenced, Hospitality Venue Fund 2021 - July Ext (Vic) / Top Up Payments (Vic), and various Business Cost Assistance Program Grants
(Vic).
Electric Vehicle Exemption:
Electric vehicles under the luxury car tax threshold (currently $84,916) will be exempt from fringe benefits tax and the 5% import
tariff.
Digital Currency: Legislation will be introduced to clarify that digital
currency (or cryptocurrencies) will not be treated as foreign currency for income tax purposes and will continue to be taxed as being
subject to capital gains, on revenue account or trading stock as appropriate.
Off Market Share Buybacks:
The tax treatment for off-market share buybacks undertaken by listed public companies will be aligned with the treatment of on-market
share buy-backs to improve the integrity of the tax system.
Energy Efficient Upgrade Grants: Grants will be provided to small and medium sized
businesses to fund energy efficient equipment upgrades.
Additional Funding for ATO Tax Avoidance Taskforce:
$200 million allocated to pursue new priority areas of observed tax risks, complementing the ongoing focus on multinational enterprises
and large public and private businesses. Further funding will also be provided to focus on strengthening personal income taxation ATO
compliance programs.
Downsizer Contribution to Superannuation: The downsizer contribution allows
people to make a one-off post-tax contribution of $300,000 per person to their Superannuation Fund from the proceeds of selling their
home, subject to meeting certain criteria. The government has confirmed the reduction in the eligibility age from 60 to 55 for
Australians wishing to make downsizer contributions. Legislation to give effect to this measure is currently before the Senate.
Other:
Housing Affordability: the government as a commitment to first time buyers, is ramping
up its commitment to affordable housing by unveiling a National Housing Accord. The National Housing Accord aims to build one million new
homes over 5 years from the 2024 year.
Of course, many other items that came out of the Federal Budget, many of which will undergo
further debate in the coming weeks.
If you require more information on the updated 2022-23 budget and how it could affect you/your business, please do not hesitate to
contact your Ashfords advisor on 03 9551 2822
Please note: the information contained in our articles is general in nature and does not address the circumstances of any
particular individual or entity. We endeavour to provide accurate and timely information, however, cannot guarantee that it will continue
to be accurate in the future. Always obtain appropriate professional advice for your personal circumstances. For more information or
tailored advice, please contact your Ashfords advisor.
The Victorian Government, as announced in the 2023-24 Budget, is progressively abolishing stamp duty on commercial and industrial
property and replacing it with an annual tax.
The annual tax, to be known as the Commercial and Industrial Property Tax (CIPT), will be set at 1% of the
property’s unimproved land value.
The tax will replace land transfer duty (stamp duty) that is currently payable on the improved value of the land when you purchase or
acquire a commercial or industrial property in Victoria.
The new tax system will start to apply to commercial and industrial property if the property is transacted on or after 1 July 2024.
Last week, Ashfords hosted the latest Building Business Value seminar. Maximising Business Value: Break Through the Barriers
brought together a diverse panel of experts, featuring specialists from talent, marketing and finance to help businesses identify and
overcome common barriers to enhance their business value.
A conversation at a community event kicked off productive philanthropic relationship between Ashfords and Down’s Community Farm. Twelve
months on, we reflect on some of the key outcomes, including a successful grant submission that secured $200,000 in funding.
