Budget October 2022-23. Tax Implications.
The Federal Labour Government handed down its first budget of the current parliamentary cycle on Tuesday the 25th of October.
The Treasurer had said that there would be no major changes in this first budget, and from a taxation perspective, this is certainly accurate.
Please note that these are only budget announcements, they are not legislation and may never be.
The major taxation related announcements were:
- From 1st July 2022 there will be a Fringe Benefits Tax exemption for certain battery, hydrogen and plug in hybrid cars provided to employees.
- The minimum age for eligibility for the downsizer super contribution (i.e., $300,000 you can put into you superannuation when you sell your main residence) has been decreased from 60 to 55.
- The Heavy Vehicle Road User Charge will increase from 26.4 cents per litre to 27.2 cents per litre from 29th September 2022. The practical effect of this will be the reduction in the fuel tax credit rate for heavy vehicle users.
- The Australian Taxation Office will receive a lot more funding for compliance activities, including extension of the Personal Income Taxation Compliance Program, Tax avoidance Taskforce and the Shadow Economy Program.
There are some measures announced by the previous Government in their last budget, which did not have support across both parties. These never became legislation before the election but may be reintroduced to parliament at some stage.
These include the 20% bonus tax deduction for expenses supporting digital operations and the 20% bonus tax deduction for external training delivered to employees.
If you have any queries, please email: email@example.com and we will be in touch, alternatively, contact your Accountant directly.
Patrick Rowan & Associates