On 25th October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government.
A few key points of interest were:
The Government will introduce legislation to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency.
The Government will not proceed with the measure to allow taxpayers to self-assess the effective life of intangible depreciating assets, which was announced in the 2021/22 Budget. Reversing the decision will maintain the status quo (ie effective lives of intangible depreciating assets will continue to be set by statute).
Superannuation – Downsizer Contributions
The Government will allow more people to make downsizer contributions to their superannuation by reducing the minimum eligibility age from 60 to 55 years of age. The downsizer contribution allows people to make a one-off post tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home.
FBT – Electric Cars
From 1st July 2022, the measure will exempt battery, hydrogen fuel cell and plug-in hybrid electric cars from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars ($84,916 for the 2022/23 year). The car must not have been held or used before 1st July 2022.
Employers will need to include exempt electric car fringe benefits in an employee’s reportable fringe benefits amount.
Supporting Small Business Owners
The Government will provide $15.1 million over two calendar years from 1st January 2023 until 31st December 2024 to extend the Small Business Debt Helpline and the New Access for Small
Business Owners programs to support the financial and mental wellbeing of small business owners.
Energy Efficiency Grants for Small and Medium Sized Enterprises
The Government will provide funding to support small to medium enterprises to fund energy efficient equipment upgrades. The funding will support studies, planning, equipment and facility
upgrade projects that will improve energy efficiency, reduce emissions or improve the management of power demand.
If you require more detailed information in relation to any of the Budget outcomes listed above please call our office on 9387 5637.
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