Budget 2022: Breakdowns and the big wins

• Business News
• Tax

Small business owners, tax payers, new parents and apprentices are the big winners out of the 2022-23 budget announcement from the Federal government.

The package, presented by Treasurer Josh Frydenberg, is aimed at easing cost-of-living pressures felt by millions of Australians.

While emissions reduction, renewable energies and climate were notably missing from the announcement, the winter COVID wave was addressed, with a $132 billion top up to Australia’s health budget.

Budget Breakdown

Small Business Owners

The government is cutting red tape for fuel and alcohol small businesses that earn less than $50 million by allowing them to lodge returns and pay excises on a quarterly rather than weekly basis.

Small businesses with an annual turnover of less than $50 million will, from next Tuesday, be able to deduct 20 per cent of the cost of training their employees.

“For every $100 a small business spends on training their staff, they will get a $120 tax deduction”

Treasurer Josh Frydenberg

Similarly, small businesses will be able to deduct 20 per cent of the cost of purchasing equipment to digitalise their businesses, such as portable payment devices, cyber security systems or subscriptions to cloud-based services.

An additional $53.9 million will be spent to continue COVID-19 business support payments and pandemic leave disaster payments.

Apprentices and their Employers

• Apprentices, trainees and their employers will receive $1.3 billion in wage subsidies and cash payments over the next five years in a bid to boost Australia’s skills pipeline
• Apprentices and trainees in priority industries (which are yet to be confirmed) will receive a $5000 payment, split into four instalments every six months for three years
• First and second-year apprentices in priority industries will have 10 per cent of their wages paid by taxpayers through to 2025-26, falling to 5 per cent in their third year
• It comes in addition to $365 million in wage subsidies for all apprentices and trainees that will be paid out over the next three months under extended COVID measures.

Tax Payers

• The low-and-middle-income tax offset has been increased by $420 per person in 2021-2022
• 10 million taxpayers with annual incomes up to $126,000 will benefit
• The top payment will rise from $1080 to $1500, while the smallest payment will increase from $256 to $676

$1.5 billion has also been allocated to offset cost of living pressures, with income support recipients to receive a one-off $250 boost.

Motorists are also budget winners with a $3 billion halving of fuel taxes, seeing the petrol prices falling by 22.1 cents per litre within the next fortnight.

For further information on budget 2022-23 and it’s impact on your business, lock in your obligation free chat with the team at Elevate Accounting on 08 9460 1040 or CLICK HERE to book online.