2022 Federal Budget Summary
In late October 2022, the Labour government delivered their first federal budget since May 2013. We have reviewed the detail of the budget monitored the responses over the last few weeks. The 2022-23 budget is tagged as the “Building a better future” by the Labour government. The key areas that are targeted are:
- Cheaper medicines
- Expanded paid parental leave
- Cheaper childcare
- Getting wages moving again
- More affordable housing
Some of the key areas that we believe will impact the community that we work with are outlined below. If you have any questions regarding how any of the measures may impact you, please let us know.
Superannuation:
- Home downsizer contributions of up to $300k extended to those from age 55 and above – we expect this to come into effect in January 2023.
- No changes to the amount that can be transferred into tax-free retirement phase of superannuation (from accumulation to pension).
Taxation:
- No changes to the previously announced personal income tax changes due to take effect from 1 July 2024
- No additional extension announced for the low- and middle-income tax offsets which ceased on 30 June 2022
- No extension to the fuel excise tariffs which ended 29 September 2022.
- Exemptions announced for FBT for certain electric vehicles on salary packaging arrangements from 1 July 2022
Social Security:
- Extending the paid parental leave scheme to 26 weeks (over time)
- Income limit increasing to $90kpa for singles and $144kpa for couples for eligibility requirements for the Commonwealth Seniors Health Card (now legislated)
- Increase in the childcare subsidy from 1 July 2023 to reduce out-of-pocket costs for more families
- Extension of the exemption for home sale proceeds to be excluded from asset-testing (from 12 months to 2 years), and reduced deeming on income testing
- Freezing of deeming rates on financial assets
- Increasing the Work Bonus earning levels (before income is counted for pension assessment).
Not all of measures have been legislated yet. We will continue to monitor and discuss in our review meetings what changes may impact you.