Some important Federal Budget Business News from the Treasurer tonight:
In Summary :
- The Low & middle income tax offset is extended for another year providing a tax cut of up to $1,080 for incomes under $48,000 pa and phasing out at $90,000 pa,
- Stage 3 personal tax cuts are due to start 2024,
- The Instant Asset Write Off is extended to 30 June 2023 allowing most businesses to claim an instant write off for the cost of asset purchases of less than $ 150,000,
- 1st Home Loan Schemes to support the home property market and construction:
-10,000 places for loans with 5% deposit,
-10,000 places for single parent 2% deposit home loans,
-First Home Super Saver Scheme to allow access to $50,000 from Super. - In more Federal Budget Business News, an independent umpire to be appointed to decide on ATO debt recovery action,
- The Job Trainer incentive is extended with a 50% subsidy for apprentice wages,
- 163,000 free or low fee training places added,
- Additional Childcare Subsidy with 250,000 people eligible for average savings of $2,200 per year,
- Income from patents to be tax concessionally at 17%,
- Employee Super – the $450 monthly minimum threshold has been removed so that employers of part time and casual employees earning under $450 per month, now required to pay super.
- The work test for Super contributions is being removed for those aged 67 to 74yrs.
- People aged 60 and over can now access the Super Downsizer concessions that allow an extra super contribution of up to $300,000 when you sell your home. Some conditions apply so please check with us before arranging a downsizer contribution.
- The Loss Carry Back provisions have been extended for 1 year to 30 June 2023 allowing businesses who pay tax in one year and incurred a loss in the next, to claim some of the prior year tax as a refund. Again some additional conditions apply so please speak with us if you would like more detail.
- Government spending on Road Infrastructure should see a flow on effect for strong demand in all areas of construction,
The date of effect of these changes has not been announced. The changes are not yet law but can be back dated to 11 May 2021. We will keep you posted.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our Accountants to discuss your particular needs. Accountants 2 Business Ph (07) 3823 2344
