Federal Budget 2022-23 Overview
The 2022-23 Federal Budget is aimed at moving business into the digital era with both carrots and sticks in the budget
The 2022 Federal Budget’s changes to tax laws are focused almost exclusively on businesses, specifically on lifting digital capability and adoption. The Government is providing $1.0 billion to businesses investing in digital technologies such as cloud computing, cyber security enhancements and online platforms.
For companies that invested in appropriate accounting software, the budget will give them the ability to choose to have their pay as you go (PAYG) instalments calculated based on current financial performance. Both these measures should increase business' cashflow.
However, moving businesses onto complying digital platforms allows the ATO to expand its audit activity and data-matching capabilities. We see this coming through the further investment in this year's budget into the Tax Avoidance Taskforce (that has had significant success with high wealth individuals) and the initiative to digitise trust reporting and processing.
Significant tax changes for personal taxpayers were missing in this year's budget, with the Government preferring to focus on other incentives such as cost of living relief and improving paid parental leave.
The 5 key points of the Federal Budget 2022-23
|Support for businesses
Upskilling & digital incentives
Support for costs of living
ATO focusing on trusts
Expanded Employee Share Schemes
COVID-19 concessions and the Australia-UK Free Trade Agreement continue to provide support for businesses.
Small businesses will be able to deduct an additional 20% of costs incurred to upskill staff and to invest in technology and digital adoption.
Cuts to fuel excise tax, increases to the LMITO and Medicare levy low-income threshold will provide some relief from increased costs of living.
ATO given additional funds for compliance activity. Targets include private groups, trusts and high wealth individuals.
Regulatory reforms will enable employers to make better use of Employee Share Schemes to attract and retain staff.
Click HERE to download the
report as a PDF or search links below to read on...
- Cost of living relief: fuel excise cut and tax offset
- Increasing the Medicare low-income thresholds
- COVID-19 tax concessions
- Boost to small businesses
- Expanded Patent Box Scheme
- Australia-UK Free Trade Agreement
- Tax audits and reviews
- Expanded Employee Share Schemes
Back to Top
Disclaimer: This newsletter contains general information only. No responsibility can be accepted for errors, omissions or possible misleading statements. No responsibility can be accepted for any action taken as a result of any information contained in these articles. It is not designed to be a substitute for professional advice and does not take into account your personal circumstances.