2022 Federal Budget
The labour government delivered their first federal budget in over 10 years with a focus on current issues such as skill shortages. Jim Chalmers had said the budget would provide cost of living relief “responsibly and not recklessly” without adding to inflation.
TAXATION
Tax Rates
There will be no major changes to the personal income tax rates or thresholds.
Electric Vehicles
From 1 July 2022, electric vehicles will attract concessional tax treatment. Under this concession, battery, hydrogen fuel cell and plug-in hybrid electric cars will be exempt from fringe benefits tax and import tariffs if they have a retail price below the luxury car tax threshold for fuel-efficient cars.
Anti-Avoidance
The budget provides a funding boost of $200-milion a year to the Australian Taxation Office for the next four years to extend its Tax Avoidance Taskforce.
Reporting Requirements
New reporting requirements will be implemented for Australian companies, who may now be required to report the number of subsidiaries they have and where they’re registered for tax purposes.
Superannuation
The minimum eligibility age for people to make downsizer contributions to their superannuation will drop from 60 to 55.
Individuals
Students
Over 5 years, the government will fund 480,000 fee-free TAFE education places in industries and regions will skills shortages including nursing, teaching and engineering.
Families
From July 2023, the Child Care Subsidy rates will lift from 85% to 90% for families earning less than $80,000. Subsidy rates will then reduce one percentage point for each additional $5,000 in income for families earning $530,000 (up from $350,000).
The Paid Parental Leave Scheme will also become more flexible, allowing either parent to claim the payment from 1 July 2023.
From 1 July 2024, the Paid Parental Leave Scheme will increase 2 weeks per year until it reaches a full 26 weeks from 1 July 2026. Parents will also be able to take their leave at the same time and share the leave entitlement.