Treasurer Josh Freedenberg announced the second post pandemic federal budget despite the
posed uncertainty. The new budget is formulated again prioritizing investments and jobs and
bringing back employment opportunities after the beating by COVID-19 in the past two years.
The budget includes tax related measures for businesses and some positives for individual tax
payers. The budget is also encouraging spending on various levels and promoting support for
Aged care and child care, Education, Real Estate, Agriculture and Infrastructure.
The newly formulated budget is continuing to encourage first home buyers like last year to take
the jump into the housing market. The government plans to assist another 10,000 first home
buyers with a 5% deposit. It has also increased the amount to be released from $30,000 to
$50,000 under the First Home Super Saver Scheme. Some of the Key announcement in the
latest budget includes:
– The low and medium tax-offsets to be extended- They will receive $1,080 or $2,160 for
couples that will subsequently contribute to be spent across the economy and creating
jobs.
– Cash deficit forecasts- indicating to reach $161 billion this year falling to $57 billion by
2024-25. Net debt to increase by 30% of GDP and peak at 41% by 2025.
– Reformed individual tax residency rules
– Introduced a new patent box regime- Income from medical and biotech patents to be
eligible for 17% tax rate
– Affordable childcare to reduce work barriers
– Extended Temporary Full Expensing to 12 months
– Focus on productivity, national freight and supply chain
– Gender lens- Target safety and economic security
– $450 per month as the minimum income threshold for super guarantee to be removed
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