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- For singles, the 2% Medicare Levy doesn’t kick in until earning over $24,276, and $40,939 for families without dependants.
- We saw an end at the beginning of this year to the $1500 low-middle income tax offset (LMITO) that was brought out as a relief during COVID.
- The low-income tax offset remains unchanged, offering a $700 offset for single incomes below $37k.
- Equal increases of $40 per fortnight to Youth Allowance, Job Seeker payments and Aus Study.
- Increase the Rent Assistance Payments by 15%, an extra $31 per fortnight for majority of renters receiving this assistance.
- $1m allocated to unlock more than 110,000 low-interest loans for energy-saving home upgrades.
- $500 energy bill relief for eligible households, including pensioners, gov. support payment recipients and veterans.
- Increasing the maximum age of children from 8 to14 for the Single Parenting Payment from September 2023.
- Allowing single parents to earn an extra $569.10per fortnight before payments stop
- Cheaper childcare promises as income testing for families increase from a 90% subsidy below $80k, up to income of $530k.
- Strengthening support provided by Medicare by tripling the incentive to doctors to bulk bill and backed up a significant investment in PBS medication.
- Unfortunately, for the high-income earners currently earning over $120k a year, you will need to wait for your benefits to begin from 1 July 2024, when the tax rates set to change to a flat 30% tax rate for individuals between $45k and $200k.
- Paid Parental Leave scheme combines with Dad & Partner Pay for a single 20-week payment and an increase income test of$350,000 from 1 July 2023. A commitment made for this payment to reach 26 weeks by 2026.
- The Frist Home Guarantee is expanded to make more Australian eligible, now including any 2 eligible borrowers (beyond marriage/de facto) and non-first home buyers who haven’t owned a home in over10 years.
The key takeaways are as follows:
- Removal of the Temporary Full Expensing, allowing businesses to fully deduct the cost of eligible assets.
- Relief payments announced offering $650 for eligible small businesses against their energy bills.
- The 2022-23 income year is the final year for which eligible businesses can carry-back losses to prior years.
- The Instant Asset Write-off for small businesses (turnover less than 10 million) will be able to immediately deduct the cost of eligible assets under $20k from 1 July
- A proposed amnesty period on lodgment penalties for small businesses (less than 10 million turnover) with outstanding statements originally due between 1 December 2019 and 29 February 2022.
What to know about your workers
- A new offering of 300,000 TAFE positions that are fee-free is set to help skill the Australian workforce and mean more possibly staff to join our teams.
- An announcement disclosed previously has been confirmed, that Employers will be obliged to offer employees 10 days of paid leave for family and domestic violence per year.
Other budget reforms - What it could mean for your business?
- Heavy Vehicle Road User Charge increase by 6% each year over the next 3 years. This will impact on the transport and heavy haulage businesses across Australia.
- Petroleum Rent Resource Tax increases impacting the gas industries and end users of such products.
- Increase of Tabacco rates.
Two-sided stance to superannuation changes
- Taking affect from 1 July 2026, Employers will be required to pay the compulsory contributions to their employees super funds inline with the pay periods.
- Commitment to the super rate increase reaching12% by 2025.
- For super account balances above $3 million, an additional 15% tax will apply from 1 July 2025.
- For those Australians in pension phase, the minimum drawdown will now go back to the full 4% of pension balance each year.
