The 2022-23 Federal Budget is a safe Budget (arguably one focused on vote retention) and as expected with a focus on the cost of living, home ownership, and health.
Key initiatives include:
- A 6 month, 50% reduction in fuel excise with effect from midnight Budget night
- A $420 cost of living tax offset for low and middle-income earners from 1 July 2022
- A one-off $250 economic support payment to some social security payment recipients
- For small businesses, a $120 tax deduction for every $100 spent on training employees and digital adoption
But, it is also a Budget that drives digitisation.
Not just to support innovation but to streamline compliance, create transparency and more readily identify anomalies. Single touch payroll was the first step, the PAYG instalment system, trust compliance, and payments to contractors are next.
Winners and Losers
Who’s set to benefit most from the federal budget? Great question.
Amongst others, families, apprentices, welfare recipients, motorists and the Defence industry have all been handed sizable financial support and measures in the Budget this year.
Sadly the Arts sector will have funding reduced periodically over the next few years.
The budget deficit is listed at $78 billion – or 3.6 per cent of GDP.
Josh Frydenberg said earlier this month that the time for “crisis level” spending was over.
Keep an eye on our social media posts and stories for more feedback on the Budget this year and as always get in touch anytime for a confidential discussion.
Please reach out to the team at Flux Advisors to see how these announcements have impacted you.
