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INDUSTRY NEWS
NATIONAL
Federal Budget 2022 – Summary of announcements The former Federal Treasurer delivered his last Federal Budget in the Parliament on 29 March 2022. Economists have commented that former Treasurer Frydenberg has delivered a budget with various cost of living reduction measures for the public, as well as some initiatives of interest to businesses across the country. Following the enormous support packages to help Australia through COVID-19, the budget sought to strike a balance between pre-election spending and responsible long-term economic management. While much of the media coverage is focused on the consumer-facing measures such as the cut to petrol excise, the budget contained schemes relevant to many family and privately owned businesses and companies.
Budget highlights summary: For Individuals 1. The fuel excise tax will halve from 44.2 cents per litre to 22.1 cents per litre for six months, coming into effect from Budget night 2022. This will help alleviate the impact of rising oil prices as a result of the Ukraine conflict. 2. A one off $420 cost of living tax offset for workers eligible for the low- and middle-income tax offset will come into effect from 1 July 2022 to help manage rising living costs. 3. Pensioners and other welfare recipients will receive a $250 one off cash payment, to be paid within weeks of the 2022 Budget announcement. 4. The Deposit Guarantee Scheme will more than double to 50,000 places per year. The scheme cuts the deposit required to buy a home to 5%, with the Federal Government guaranteeing the other 15%. There will be places set aside for single parents – either buying their first properties or trying to re-enter the housing market. Eligible single parents can receive a guarantee mga.asn.au | June 2022 | Edition 3
of expenses and depreciating assets, up to $100,000 of expenditure per year.
with a deposit of just 2%. 5. The First Home Super Saver Scheme (FHSSS) will be tweaked. It will allow first home buyers to withdraw $50,000 from their super, up from $30,000. This scheme allows first home buyers to save a deposit by contributing to super while paying less tax.
b.
Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloudbased services.
c.
The boost will apply to expenditure incurred from 29 March 2022 until 30 June 2023.
For Businesses 1. The existing instant asset write off rules for businesses with turnover or income of less than $5bn have been extended to 30 June 2023. 2. $10.4 million to enhance and redesign the Payment Times Reporting Portal and Register, making it easier to view the payment practices of Australia’s largest organisations. 3. $5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier for them to meet workplace obligations. 4. $8 million to the Australian Small Business and Family Enterprise Ombudsman, making it easier to access expert advice. 5. $4.6 million to extend Beyond Blue’s NewAccess for Small Business Owners program, making it easier to access mental health support. 6. The Technology Investment Boost aims to reduce the cost of going digital, supporting business investment in digital capability. a.
Small businesses with an annual turnover of less than $50 million can claim a bonus 20 per cent deduction for the cost
7. The Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. a.
Small businesses can claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.
b.
This will apply to expenditure incurred from 29 March 2022 until 30 June 2024.
8. The Government will invest $2.4 billion in a new Australian Apprentices Incentives System (AAIS), with targeted incentives to employers, apprentices, and trainees. a.
From 1 July 2022, the AAIS will focus government investment on priority occupations that face skills shortages and will be introduced in two phases.
b.
It will provide wage subsidies for employers in priority occupations and hiring incentives for employers in nonpriority occupations.
