The Federal Government handed down its budget on Tuesday 25 October. We have had a thorough look through it with you in mind. Below are the proposals that are most likely to affect you or be of interest:
Child Care Subsidy (CCS) increase
- The CCS rate will increase from 85% to 90% for families earning less than $80K per year.
- The cut-off limit will be increased to $530,000 per family (currently $356,756).
Paid Parental Leave (PPL)
- From 1 July 2023, either parent can claim PPL and parents can claim the payment concurrently, so they can take leave at the same time.
- Eligibility has expanded to a $350K family income test, which will help those who do not meet the individual income test.
- From 1 July 2024, the scheme will be expanded by two additional weeks per year until it reaches 26 weeks from 1 July 2026.
Electric Vehicles (EV)
- Electric vehicles under the luxury car limit ($84,916) will be exempt from Fringe Benefits Tax and from import taxes.
Encouraging pensioners to return to work.
- Pensioners can now earn an additional $4K per year before their pension is reduced, taking the amount from $7,800pa to $11,800pa.
Additional funding for floods and natural disasters.
- An additional $51.5m has been provided to support communities impacted by natural disasters through the Australian Government Disaster Recovery Payments (AGDRP), Disaster Recovery Allowance (DRA), and other payments made under the Disaster Recovery Funding Arrangements.
“Downsizer” eligibility reduced to 55
- The age of those individuals wanting to make a “downsizer” contribution to superannuation has reduced from 60 to 55 years of age. The contribution can be up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home.
Cryptocurrency not a foreign currency
- Subject to legislation being passed, crypto is to be treated as a capital asset for tax purposes rather than a foreign currency.
Energy efficiency grants for Small to Medium-sized Enterprises (SME)
- The Government will provide $62.6m over 3 years from 2022-23 to help SMEs fund energy efficient equipment upgrades. The funding will support studies, planning, equipment, and facility upgrade projects that will improve energy efficiency, reduce emissions or improve the management of power demand. No details of the grants are currently available.
Note: The 2022–23 Budget is subject to receiving royal assent and is not yet law.
