1st April 2022
We have had a good look through it with you in mind. Below are the proposals that are most likely to affect you or be of interest.
For You and Your Family
Temporary Reduction in Fuel Excise
For 6 months, until 28 September 2022, the fuel excise rate will be reduced by 22.1 cents per litre. The ACCC will monitor fuel prices to ensure this saving is passed on to consumers.
Low and middle income tax offset (LMITO) increase
Already in place is a tax offset of up to $1,080 for individuals with a taxable income of up to $126,000, remembering that a tax offset is an amount that reduces your tax liability. For 2021-22, the LMITO will be increased by $420 which means that the proposed new rates for individuals are as follows:
$250 Cost of Living Payment
A one-off $250 “cost of living payment” will be paid automatically to eligible pensioners, welfare recipients, veterans and concession card holders.
Home Guarantee Scheme
This scheme guarantees part of an eligible buyer’s home loan, enabling people to buy a home with a smaller deposit and without the need for lender’s mortgage insurance. See here for more detail.
Business
$120 Deduction for every $100 Spent on Technology
This incentive is aimed at encouraging businesses to adopt digital practices such as portable payment devices, cyber security systems or subscriptions to cloud based services, capped at an annual expenditure of $100,000. This will result in a 120% tax deduction for small businesses. It might be time to consider using Xero?
$120 Deduction for every $100 Spent on Training
Small businesses will receive a 120% tax deduction for external training courses provided to employees. The training needs to be provided in Australia, or online, and delivered by Australian registered entities. In-house or on-the-job training is excluded.
Apprentice Wage Subsidy Extended
Any employer who takes on an apprentice up until 30 June 2022 can gain access to 50% of the apprentice’s wages in the first year (capped at $7K per quarter), 10% of the apprentice’s wages in the second year (capped at $1,500 per quarter) and 5% of the apprentice’s wages in the third year (capped at $750 per quarter).
$450 per month for super contributions removed
Actually announced in last year’s budget, this change is now law, meaning employers will be required to make super guarantee contributions to their eligible employee’s super fund regardless of how much the employee is paid.
