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:

• 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; and
• A one-off $250 economic support payment to some social security payment recipients.

But, it is also a Budget that drives digitisation. Not just to support innovation but to streamline compliance, create transparency and more readily identify anomalies. Single touch payroll was the first step, the PAYG instalment system, trust compliance, and payments to contractors are next.

Beyond compliance, there is an opportunity capitalise on the benefits of the Government’s push towards innovation and investment in new technology. Not just the $120 tax deduction for every $100 spent on training employees and digital adoption, but also the expansion of the patent box tax concessions. There are opportunities for those pushing boundaries.

Other points are noted as follows:

• Temporary increase in the Low & Middle Income Earner Tax Offsets (“LMITO” – but this is the last one and only applies to the 2022 tax returns lodged) – this was in the range of $255-$1,080 and will be now $675-$1,500;
• Cut in fuel excise by 22c for 6 months – will start flowing through in the next 7-10 days;
• Small Businesses will be able to claim 120% tax deductions on external training and technology for employees from 7.30pm 29 March 2022 until 30 June 2024;
• The temporary asset write off is confirmed to be extended to 30 June 2023;
• PAYG instalments will be factored at 2% increase on previous tax return lodged instead of 10%;
• Small businesses will have a choice to apply PAYG instalments as a % of turnover for the BAS or choose a figure to input based on financial performance from their business accounting software;
• The Covid NSW Small Business Support Program (& other various state Covid grants) is Non-Assessable Non Exempt income;
• The ATO task avoidance taskforce has been extended and has more funding;
• Single Touch Payroll (STP) data is to start soon being shared with the states for payroll tax etc; and
• The Superannuation Guarantee Contributions scheme (SGC) is still legislated to increase to 10.5% 1 July 2022.

If we can assist you to take advantage of any of the Budget measures, or to risk protect your position, please let us know.

As always, we’re here if you need us!