TOP TWENTY 2022 -2023 BUDGET HIGHLIGHTS

1. Low- and middle-income tax offset (LMITO) increased by $420 for 2021-22 – a one-off $420 cost of living tax offset for the 2021-22 income year will see the low- and middle-income tax offset (LMITO) increased up to a maximum of $1,500 for 2021-22 only (up from $1,080).
2. Small business 20 per cent deduction boost for skills training and digital adoption – businesses with turnover less than $50 million will receive a 20 per cent uplift on deductions for eligible expenditure on external training courses and digital technology. Effective from 29 March 2022 until 30 June 2024 (for skills training) and 30 June 2023 (for digital adoption). up to $100,000 of expenditure per year. Small businesses will also have access to a bonus 20 per cent deduction for the cost of external training courses delivered to their employees.
3. TPAR – Taxable Payment Annual Report – Taxable payments data reporting option – from 1 January 2024, businesses will be provided with the option to report Taxable Payments Reporting System data on the same lodgement cycle as their activity statements, via accounting software.
4. $250 cost of living payment – the Government will make a $250 one-off cost of living payment in April 2022 to eligible pensioners, welfare recipients, veterans and concession card holders. It will reach to about 6 million individuals.
5. Apprentice wage subsidy extension – the Budget confirmed the extension of the Boosting Apprenticeship Commencement (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies by three months to 30 June 2022.
6. Good News for First Home Buyers – 8.6 million to expand Home Guarantee Scheme to 50,000 places per year. Up to 35,000 places per year will be available for first home buyers.

10 $116.8 million to increase the Australian Criminal Intelligence Commission’s capacity to identify and disrupt serious criminal activity.

11 Paid Parental Leave scheme integrating existing schemes to give eligible families access to up to 20 weeks leave to use in ways that suit their specific circumstances.

12 Total 2022-23 revenues are estimated at $547.6 billion, or 23.8 per cent of GDP. Expenses are estimated at $625.6 billion or 27.2 per cent of GDP

13 Net debt is expected to rise to $714.9 billion, or 31.1 per cent of GDP, in 2022-23 and $864.7 billion in 2025-26. Net and Gross debt both increased since Covid 19 started early January 2020.

14 Foreign residents For 2022-23, the tax rates for foreign residents (unchanged from 2021-22) are $0 – $120,000 – 32.5%; • $120,001 – $180,000 – 37%; • $180,001+ – 45%. For 2024-25 and later income years, the tax rates for foreign residents are: • $0 – 200,000 – 30%; • $200,001+ – 45%.

15 Working holidaymakers For 2022-23, the rates of tax for working holiday makers (unchanged from 2021-22) are: • $0 – $45,000 – 15%; • $45,001 – $120,000 – 32.5%; • $120,001 – $180,000 – 37%; • $180,001+ – 45%.

17 The Budget papers confirm that the costs of taking a COVID-19 test to attend a place of work are tax deductible for individuals from 1 July 2021.

18 External training courses An eligible business will be able to deduct an additional 20 per cent of expenditure incurred on external training courses provided to its employees. The training course must be provided to employees in Australia or online and delivered by entities registered in Australia. Some exclusions will apply, such as for in-house or on-the-job training. From now until 30 June 2024.

19 The Government has extended the measure which enables payments from certain State and Territory COVID-19 business support programs to be made non-assessable non-exempt (ie NANE) for income tax purposes until 30 June 2022.

20 Company registration and lifecycle management system to be modernised The Government confirmed that Australia’s Business Registers (i.e., its company registration and lifecycle management system) will be moving to a modernised platform by September

2023. The reforms include: • removing the companies annual late review fee • reducing the number of fees paid for ad hoc lodgements under current requirements • removing fees for searches conducted on the new registry website, and • providing funding to Treasury to redesign wholesale business register search services (facilitated by third-party services)

And the Government has announced that it will expand the Home Guarantee Scheme in the 2022-23 Budget to make available up to 50,000 places each year, including 10,000 places for a new Regional Home Guarantee open to non-first home buyers. Iron ore price is assumed to decline from $134 to $55 per tonne free on board (FOB); metallurgical and thermal coal prices are assumed to decline from $512 to $130 per tonne FOB and $320 to $60 per tonne FOB, respectively.