The annual budget was announced on 29 March 2022.
The tax and superannuation highlights in the Budget include:
▪ the Low and Middle Income tax offset (LMITO) will increase for 2021–22 by $420 (but will not be extended beyond 2021–22);
▪ the 50% reduction in the minimum drawdown requirements for superannuation pensions will be extended for a further year to 30 June 2023;
▪ the fuel excise (and excise-equivalent customs duty) will be reduced by 50% for 6 months from 30 March 2022 (but not for aviation fuels);
▪ businesses with aggregated annual turnover of less than $50 million will be able to deduct 120% of eligible expenditure incurred from 7:30pm AEDT on 29 March 2022 to 30 June 2024 on external training courses provided to employees;
▪ businesses with aggregated annual turnover of less than $50 million will be able to deduct 120% of the costs incurred from 7:30pm AEDT on 29 March 2022 to 30 June 2023 on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services (subject to an annual cap of $100,000);
▪ the PAYG instalment GDP uplift factor for 2022–23 will be 2% (instead of 10%);
▪ the patent box regime (currently before Parliament) will be extended to low emissions technology and the agricultural sector;
▪ a number of State COVID-19 business support grants will not be taxable;
▪ the proceeds from the sale of Australian Carbon Credit Units and biodiversity certificates generated from on-farm activities will be treated as primary production income for the purposes of tax averaging and the farm management deposits scheme, from 1 July 2022; and
▪ companies will be able to choose to have their PAYG instalments calculated on the basis of current financial performance.
If you have any questions in relation to the recent budget announcement, please contact us and we’d be more than happy to assist. For more detailed review on the measures announced in the budget and how they affect you or your business, please go to this budget link below.
