Big on Budget - what's to come in the coming financial year
With the release of the Federal Budget last night, it’s been reported Australians will see a clearer way forward to navigate through the coming financial year. This is a critical Budget for many reasons. It’s an election budget, it’s coming off the back of a pandemic and a series of extreme emergency events, and it addresses the uncertainty pertaining to the Russian-Ukraine war, which has seen a spike in inflation and record petrol prices.
Key initiatives include:
- A 6-month, 50% reduction in fuel excise with effect from midnight Budget night
- A $420 cost of living tax offset for low- and middle-income earners from 1 July 2022
- A one-off $250 economic support payment to some social security payment recipients
- For small businesses, a $120 tax deduction for every $100 spent on training employees and digital adoption
Measures announced for SMEs focus on using technology and real-time data to lower compliance costs, ways to improve transparency, and approaches to match tax payments to financial performance.
- Lowering tax instalments in 2022-23 – GDP uplift rate set to 2% (instead of the statutory 10% rate that would have applied) for PAYG and GST instalments.
- Expanding access to employee share schemes – updated rules to expand access to schemes so that employees at all levels can directly share in the growth of the business.
- Automating tax reporting and aligning instalment payments to financial performance – aligning tax reporting and instalment payment obligations to financial performance using automated tax reporting systems. New systems to implement this measure are expected to be in place by 31 December 2023 for implementation by 1 January 2024.
- Payroll data sharing between Federal, State and Territory Governments – sharing of single touch payroll data by late 2023.
- Option to report Taxable payments data at the same time as activity statements. New systems are expected to be in place by 31 December 2023, for implementation by 1 January 2024.
- All trusts to have the option to lodge income tax returns electronically. New systems are expected to be in place by 1 July 2024.
- Quarterly lodgement and payment of excise and excise equivalent customs duty for manufacturers, importers and distributors in the alcohol and fuel sectors with an annual turnover of less than $50 million from 1 July 2023.
For more information, click here to download the detailed Budget Guide.