Our thoughts on the 2022/23 Federal Budget
Last night (29 March 2022) the 2022/23 Federal Budget was handed down by the Federal Treasurer.
Ben Silby, Richard Lovell & Scott Edwards have penned their thoughts of the budget, have a read below:
"A couple of the key items in the new budget include a tax reduction for Australians earning less than $126,000 per annum, along with a focus to reduce the increase in costs for households while aiming to manage inflation.
There is also support for businesses with skills, training, and technology boosts available, the only matter with this is finding the people to upskill as there is a shortage of employees."
"Not the cash splash that many were expecting given the upcoming election in May. As was anticipated, however, cost of living and affordable housing issues have been a key focus.
Very quiet on the superannuation front but we welcome the extension of the discount to the minimum payment requirements of superannuation income streams, not forgetting that many of the announcements from last year’s budget (providing more contribution flexibility for older individuals) will take effect from July 1 2022. We are happy to see Small Business benefit yet again with the relief around future PAYG instalment payments and the various incentives around business investment, staff and training and we support the continuing special focus on Women from health and gender equality perspectives."
A number of the measures are focused and temporary, which is perhaps understandable, given the current level of economic uncertainty due to war in the Ukraine, our on-going battle with covid, and even the recent flooding in the Eastern States.
It is a pre-election budget, and accordingly there are a range of measures designed to put “dollars in the pockets” of a large portion of the voting population.
There is also targeted expenditure on areas such as flood relief, reducing violence toward women and children, and additional national security and defence spending.
Small business will appreciate the increase in the low and middle income tax offset, the temporary fuel excise cut, and the tax incentives for spending on training and technology investment.