Federal Budget 2022-23


FB23

Kelly+Partners Report

Federal Budget 2022-23 Overview

Our expert team of Tax Consulting experts summarise the key points for your personal and business finances.

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Federal Budget 2022-23: Supporting small businesses and cost of living


The 2022-23 Federal Budget was handed down last evening. This Federal Budget is aimed at moving businesses into the digital era with both carrots and sticks in the budget.

This Budget is focused on boosting a stronger economy by supporting small businesses and delivering cost of living relief for Australians with measures including:

  • COVID-19 tax concessions for certain state government grants and programs
  • Incentives for upskilling employees and investment into technology
  • Helping with cost of living with cuts to fuel excise tax and increases to the low and middle income tax offset (LMITO)
  • Increasing the Medicare levy low-income threshold
  • Expanded Patent Box Scheme
  • Expanded access to Employee Share Schemes

The 2022 Budget also indicates the government's continued focus on business tax compliance, trust income splitting and high net wealth individuals.

Key Highlights

FinAnalysis

Key forecasts

Budget deficit of $78 billion in 202/23, down from $161 deficit last year. The 2022 Federal Budget is aimed at moving businesses into the digital era with both carrot and stick measures.

Moneyflow

Support for small businesses to adopt technology and upskill employees

$1.0 billion to support small businesses investing in digital technologies such as cloud computing, cyber security and online platforms. $2.8 billion for apprentices and $2.2 billion to support innovation in Australian industries and universities.

Assets

ATO focusing on trusts

ATO given additional funds for compliance activity. Targets include private groups, trusts and high wealth individuals.

TaxCuts

Helping Australians with the cost of living

Cost of living relief to Australians will include temporary reductions to fuel excise and increasing the existing low and middle income tax offset by $420. $1.5 billion will be spent on a one-off $250 payment to go to pensioners, welfare recipients, veterans and concession card holders.

Moneyflow

$21 billion for regional transport, water and communications infrastructure

$7.1 billion for Northern Territory, North and Central Queensland, Pilbara (WA) and Hunter (NSW), to help push into new areas of production and growth. $7.4 billion to enhance water infrastructure across Australia.

TaxExemptions

COVID-19 Tax Concessions

Certain state and territory COVID-19 business grants and support programs will be treated as non taxable income. COVID-19 tests for businesses and employees will be tax dedutible.

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