2022 Federal Budget: What it means for you

With a Federal Election due in the next few weeks, the Morrison Government has just made its bid for re-election with the following headline announcements in its Federal Budget released on Tuesday 29 March 2022:

  • Petrol tax slashed by 22 cents per litre for 6 months from Budget night.
  • 10 million low and middle-income earners will receive a once-off bonus tax rebate of $420 – giving a total of $1,500 to eligible individuals after they lodge their 2022 Tax Return.
  • A $250 one-off payment to six million pensioners and welfare recipients.

There were no changes announced to tax rates or superannuation laws, which was very much welcomed.

Millions of small businesses (annual turnover of less than $50 million) will be eligible for the new Technology Investment Boost, which offers a bonus 20% tax deduction for costs such as online sales platforms, cloud computing, portable payment devices and cyber security systems.

Based on our analysis, the big winners appear to be:

  • Tradies – New wage subsidies to employ apprentices.
  • Low to middle income taxpayers – An increase to a tax offset available after they lodge their 2022 Tax Return.
  • Small Business – New 120% tax deductions will be available for training for employees and for digitising a business.

There are a number of key areas that you should be aware of:

Individuals

Business Owners

Small Business Owners (turnover under $50 million)

Please note that if there is a change in Federal Government, we would expect the new Government to release their own updated Budget. This may change some or all of the key announcements made in this Budget.

To get the maximum benefits from the new measures announced in the 2022 Federal Budget, please contact us now to book your 2022 Tax Planning meeting with us.