Federal Budget 2022

Yesterday the Federal Budget was released and with it some interesting incentives for individuals and businesses alike.

See below for a few Key Points from the budget, so you don't have to read the whole thing:

• Infrastructure: $17.9 billion committed towards new and existing infrastructure projects.

• Cost of Living - Fuel: Fuel excise will reduce from 44.2 cents per litre to 22.1 cents per litre from 30 March 2022.

• Individuals: The low and middle income tax offset for taxpayers earning less than $126,000 will be increased for the 2021-22 income year to $1,500 for individuals and $3,000 for couples. 

• Social Security: Eligible pensioners, welfare recipients, veterans and concession card holders to receive $250 cost of living payment.

• Small Business Skills Boost: Small businesses (turnover less than $50 million) can deduct an additional 20% of expenditure incurred on external training courses for employees. 

• Small Business Technology Boost: Small businesses (turnover less than $50 million) can deduct an additional 20% of expenditure incurred on business expenses that support digital adoption.

• Retirees Superannuation: The 50% reduction of superannuation minimum drawdown requirements for account based pensions and similar products extended to 30 June 2023.

• COVID-19 Test Expenses: For individuals, will be tax deductible if required for employment. Businesses will not be subject to FBT where COVID-19 tests are provided to employees for attending work.

• Employee Shares Scheme (ESS): Reduction of red tape so that all levels of employees can participate in ESS by reducing regulatory requirements.

• Defence: 10 year defence capability plan worth more than $270 billion supporting more than 100,000 jobs.

• Housing Guarantees: Expanding the Home Guarantee Scheme which will be available for up to 50,000 places each year.

I am pretty stoked about the Small business technology boost. Working in a Tech start-up we use a lot of cloud based platforms, so it is cool to see this addition. As well as the training boost too, it is always great to continue learning and up-skilling yourself. Hopefully it will help continue driving digital adoption in Australia.

Is there anything you are excited about from within the budget?