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Highlights of Federal Budget for 2022-2023

The announcement of the 2022-2023 federal budget, on what could be considered one of the most uncertain times in the last few decades, the cost of living has been one of the focuses, along with the sky-high petrol pricing, tax breaks, and pension payments.


The budget focuses mainly on the cost of living, short-term, and in general, provides a win-win situation for Australian small business owners. Here, your Coast shares what you need to know:


Highlights of the Federal Budget 2022-2023 for Low to Middle Income Earners and Social Security recipients


Low to Middle Income Earners Get a Tax Offset of $420


For families or individuals earning no more than $126,000 annually, you can access a once off payment amounting to $420 during tax time. That is on top of the $1080 threshold. What this means is that eligible individuals are entitled to an offset of $1500. For couples, that would be $3000.


The Fuel Excise Gets a Cut from 44.2 Cents to 22.1 Cents


For some good news, the tax on your petrol for the next six months will be halved from 44.2 to 22.1 centes per litre. That means a family with two vehicles that gills up their tank weekly will be able to save about $700 in the next six months.


Social Security Recipients Get a One-Off Cash Pay of $250


To help ease the pressures of a rising cost of living, Social Security recipients will be receiving $250 a one-off payment. Veterans, self-funded retirees, job seekers, and carers, are among those who will receive this payment.


Highlights for Business Owners


A Booster Shot Ammounting to $1 Billion in Tech & Upscaling Workforce


Technology is critical for the growth of small businesses, but because of limited investments and skills, small business owners have the lowest level of digital capacity in the region. The 2022-23 Federal budget introduces a new incentive for small business owners to help them - a tax deduction of $120 for every $100 spent on digital technology.


The same deduction is given for every $100 spent on upscaling the workforce. This encourages small businesses to provide better opportunities and upscale their workforce to grow as a stronger organisation.


Highlight for Directors and Company Owners


No Search Fees on the Australian Business Register Website


Those who are applying for a director ID and those managing their registry transactions won’t have to worry about search fees on the Australian Business Register website for the next three years, starting the 1st of July 2023.


New Tax Regime Introduced


A tax rate of 17% for eligible patents both in the low-emission technology and agriculture sectors applies only to the profits that are generated from the patents that are conducted in Australia.


$9.9 Billion Investment in Cyber Security


There is an increasing likelihood of cyberattacks on Australian businesses. As a response, the government is planning to invest $9.9 billion in cyber security. This means better protection from online theft and fraud.


Conclusion


Overall, the Federal Budget 2022-2023 offers some great incentives for both groups and long-term prospects for growth.


The tax offset for low to middle-income earners, for instance, will help families save more, and on the other hand, the tax deduction on improving workforce skills is a great way to promote upscaling.


With the focus on technology investments, small businesses will now be able to improve their digital capacity, which has been one of the major concerns among most small to medium size enterprise owners.


Overall, this budget is a win-win for all individuals in Australia. If you want to know more about the implications of the Federal Budget 2022-23, contact a reputable accountant for small businesses who can discuss this in detail.


New Wave Accounting offers the services of a seasoned accountant on the Gold Coast. Allow our experts to help your small business through our reliable services. Get in touch with us to set up an appointment!


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