The federal budget was handed down last night and with a federal election expected in May, this is a conservative budget that focuses on improving the skills shortage in Australia.
We have summarised below the key announcements from last night’s budget for you.
Small businesses with a turnover less than $50million will receive a bonus 20 per cent tax deduction for expenditure incurred (including depreciating assets) that supports their digital adoption up to an annual limit of $100,000.
These small businesses will also receive a bonus 20 per cent tax deduction for expenditure incurred on eligible external training courses provided to their employees.
Cheaper fuel (hopefully)
In an effort to bring down fuel prices, the government is halving the tax levied on each litre of fuel for 6 months. This will be effective from 30 March 2022 until 28 September 2022.
Low and middle income earners
Individuals earning less than $126,000 will be eligible for a $420 tax offset. This is in addition to the existing $1,080 offset, bumping the total offset up to $1,500.
A new Apprenticeships Incentive System will commence from 1 July 2022 which will see new apprentices in high-demand industries receive up to $5,000 for the first two years of their training, while their employers can access a 10 per cent wage subsidy that will drop to 5 per cent in the third year.
The proposed system will replace the generous 50 per cent wage subsidy scheme which is expected to stop on 30 June 2022.
For self-funded retirees, the government has announced that the temporary reduction of the superannuation minimum drawdown will be extended until 30 June 2023.
The announcements in last nights budget need to be passed by the appropriate government authorities before they legally come into effect.
Please contact us if you’d like to know more or if you have any questions.