The Australian Government released a safe, ballot-friendly Budget as expected with a focus on jobs, cost of living, home ownership, and health.
Key initiatives include:
Low and middle income cost of living tax offset increase
Medicare levy low income threshold increased
50% reduction in minimum pension drawdowns
120% deduction for technology and training related deductions
PAYG instalments will increase by 2% instead of 10% as in prior years
From 2024 PAYGIs can be matched to business performance
Single touch payroll data will be shared with state governments
COVID-19 test expenses will be deductible
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.
If we can assist you to take advantage of any of the Budget measures, give us a call on 07 5500 0898 or email info@mjmaccountants.com.au
Source: Budget 2022-23