Jim Chalmer’s first Budget was handed down last night and, while we waited for news of a raft of tax changes that would keep accountants and lawyers gainfully employed for years to come, we were saddened to find there were very few, if any, tax measures announced.
So, scrolling through the plethora of Budget summaries that we (and probably you) have received, here’s our take on a few items of interest:
Keeping Shtum on the Stage 3 tax cuts
No mention means they are probably here to stay, which is good news, but only for those who would like to pay less personal tax from 1 July 2024 than they currently are…
Paid parental scheme changes:
- From 1 July 2023, either parent will be able to claim.
- Will be expanded by 2 additional weeks a year from 1 July 2024 until it reaches 26 weeks from 1 July 2026.
- The maximum childcare subsidy rate for all families earning less than $530,000 (!) in household income will be increased.
- The current higher childcare subsidy rates for families with multiple children aged 5 or under in child care will be maintained.
- Can earn an additional $4,000 in 2022-23 before their pension is reduced (from $7,800 to $11,800).
- Will be able to earn more (up to $90,000 for singles or $144,000 combined for couples) and still qualify for the Commonwealth Seniors Health Card.
Supporting pensioners who want to work or work more hours, to do so.
Downsizer super contribution eligibility age to be lowered to 55 (from 60) – less house more super
Energy Grants for small and medium sized enterprises
The Government will provide funding to support small to medium enterprises to fund energy efficient upgrades, supporting studies, planning, equipment and facility upgrades that will improve energy efficiency, reduce emissions or improve the management of power demand. $62.6M allocated over 3 years (which is about one each of these for each of the 2.35 million small businesses)
More money to ATO to target taxpayer compliance and international tax
Deductible Gift Recipients (DGRs)
- Increased penalty unit from $222 to $275 per unit from 1 January 2023
- Personal Income tax Compliance Program (‘PITCP’!) to extended a further 2 years to 30 June 2025 (targetting over-claiming of deductions and incorrect reporting of income)
- Shadow economy compliance program and ATO tax avoidance taskforce extended to 30 June 2026
- Tax Practitioners Board to be given more money to investigate tax advisers
Autralians for Indigenours Constitutional Recognition will be specifically listed as a DGR for donations made from 1 July 2022 to 30 June 2025.
Struggling to find much else, but…
Australia has signed a new international tax treaty with Iceland, so here is a beautiful photo of Reykjavik for your viewing pleasure…
Please feel free to contact us if you need anything or have any queries.
With love and gratitude from the Halletts Team 😊