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MGI Worldwide member firm, MGI Parkinson, provides a quick summary of the 2022 Australia Federal Budget

4th April 2022

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At the end of last month, Australia's Treasurer, Josh Frydenberg delivered the 2022-23 Federal Budget. MGI Worldwide global accountancy network member, MGI Parkinson, in Perth, has provided a quick round-up of the key take-aways.

Whilst there is still a degree of uncertainty, both globally and locally, this year’s budget moves on from the emergency response of the last two federal budgets, as the government now looks forward to rebuilding the economy.

The budget offers limited reforms or change for business, and despite the looming election, it is certainly not a big-spending cash-splash, though there are some modest sweeteners with one-off payments and tax offsets for a large number of voters.

Key proposals for SME and private clients

Small and medium-sized businesses will enjoy a 120% deduction on eligible expenditure to encourage investment in technology, skills and training.

Key proposals for SME and private clients include:

SMEs and Employers

  • Temporary Full Expensing will end on 30 June 2023 – no further extension
  • Skills and Training Boost – 120% deduction for eligible expenditure
  • Technology Investment Boost – 120% deduction for eligible expenditure
  • Expanding access to employee share schemes

Private Clients

  • One-off $420 cost of living tax offset – increasing the LMITO to $1,500 for individuals
  • LMITO cancelled moving forward – not available in FY23
  • One-off $250 cost of living payment to pensioners
  • Superannuation minimum drawdown – 50% reduction extended to 30 June 2023

Other Snapshots

  • Overhaul of the PAYG Instalment system
  • Temporary 50% cut to the fuel excise – for 6 months from 30 March 2022
  • Carbon farming income to be treated as primary production income
  • Expansion of the Patent Box innovation concessions
  • Apprentice wage subsidy extended
  • $9.9B investment in cybersecurity capabilities
  • Funding for insolvency reform

For a more detailed analysis of the 2022 Budget see HERE.

For further information, visit the MGI Parkinson profile page or website.

MGI Worldwide with CPAAI is a top 20 ranked global accounting network and association with almost 9,000 professionals, accountants and tax experts in some 400 locations in over 100 countries around the world.

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