This is a safe, ballot box friendly Budget as expected with a focus on jobs, cost of living, home ownership, and health. Key initiatives include:
We've summarised the budget in a few different articles:
From: 12.01am 30 March 2022
There are a few jokes going around social media about the price of fuel.
As widely predicted, the Government will temporarily reduce the excise and excise-equivalent customs duty rate that applies to petrol and diesel by 50% for 6 months from Budget night. That is, the current 44.2 cents per litre excise rate will reduce to 22.1 cents per litre from Budget night. However, the measure is subject to the passage of the enabling legislation so don’t expect to see a change right away.
The reduction extends to all other fuel and petroleum-based products except aviation fuels. At the conclusion of the 6 months on 28 September 2022, the excise and excise-equivalent customs duty rates revert to previous rates including any indexation that would have applied during the 6-month period.
The Australian Competition and Consumer Commission (ACCC) will monitor the price behaviour of retailers to ensure that the lower excise rate is passed on to consumers. The measure comes at a cost of $5.6bn.
From: 1 July 2021 to 30 June 2022
The low and middle-income tax offset (LMITO) currently provides a reduction in tax of up to $1,080 for individuals with a taxable income of up to $126,000.
The tax offset is triggered when a taxpayer lodges their 2021-22 tax return. For 2021-22, the LMITO will be increased by $420 which means that the proposed new rates for individuals are as follows:
From: April 2022
A one-off $250 ‘cost of living payment’ will be provided to Australian resident recipients of the following payments and concession card holders:
The payments are exempt from taxation and will not count as income support for the purposes of any income support payment. An individual can only receive one payment.
From: 1 July 2021
The Medicare levy low-income thresholds for seniors and pensioners, families, and singles will increase from 1 July 2021.
For each dependent child or student, the family income thresholds increase by a further $3,619 instead of the previous amount of $3,597.
The Home Guarantee 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 a lender's mortgage insurance. The Government has extended two existing guarantees and introduced a new regional scheme.
Just prior to the Budget, the Government announced:
Resources:
From: 1 July 2024
Trust and beneficiary income reporting and processing will be digitalised with all trusts being provided with the option of lodging income tax returns electronically. While this measure will reduce compliance costs, it will also increase transparency and provide the ATO with a greater insight into where anomalies are occurring.
The temporary 50% reduction in superannuation minimum drawdown requirements for account-based pensions and similar products has been extended to 30 June 2023.
Keep reading:
If we can assist you to take advantage of any of the Budget measures, or risk protecting your position, please let us know. As always, we’re here if you need us!