The Federal Budget for the 2022/23 financial year

 

 

The Federal budget for the 2022/23 financial year has recently been handed down in Parliament.
Below is the list of key tax measures and changes that are included in the budget.

Business:

• Small businesses will be able to claim a 20% bonus on external training courses used for the upskilling of employees. The expenditure can be incurred between the 29 March 2022 to 30 June 2024, however the bonus’ cannot be claimed until 2023 onwards
• Small businesses will also be able to claim an extra 20% deduction for the cost of technology purchases that support digital adoption such as cloud-based services, portable payment devices and cyber security expenses. The expenditure can be incurred between the 29 March 2022 to 30 June 2024, however the bonus’ cannot be claimed until 2023 onwards
• COVID-19 Business support grants will be considered non-assessable non-exempt income, meaning that they are not assessed as taxable income and no tax is payable on them

Individuals:

• Increase to the low- and middle-income tax offset (offset increased to reduce a taxpayers income tax liability from $1,080 to up to $1,500) for the 2022 income year based on their taxable income
• The Medicare levy low-income thresholds will be increased for the 2022 income year (taxpayers will not be required to pay the levy until their income exceeds the threshold)
• COVID-19 testing costs will be claimable when these have been taken to attend work
• A one-off $250 cost of living payment will be available to eligible individuals who are currently receiving Government payments, allowances, or pensions, or are concession card holders

For more details, please visit the budget website at https://budget.gov.au/index.htm