Contact Us

Here are ten key takeaways from the Federal Budget 2022:

Instant asset write-off scheme

Despite widespread calls from many to make this a permanent fixture, there is no indication that the instant asset write-off scheme will continue past the end of the 2022-2023 financial year.

Apprenticeships

In the face of skills shortages and to boost employee retention, the federal government has said it will funnel $2.8 billion into an overhauled apprenticeship incentive scheme, which subsidises the wages of select apprentices and trainees.

From July 1, 2022, the Australian Apprenticeships Incentive System will provide wage subsidies to businesses that take on trainees in priority fields.

Employers will be eligible to claim up to $4,500 in the first year of the system and hiring incentives will also be made available for firms that employ apprentices in “non-priority” occupations.

The Coalition says it will furnish priority apprentices with $5,000 in training support payments, split into half-yearly instalments over two years.

Tax breaks for investment in technology and skills

 A ‘bonus’ tax deduction on eligible expenses will be available to small businesses looking to build their digital capacity and upskill their workforce. From 7.30pm March 29, firms can claim a further 20% on assets like laptops or servers, accounting software, portable payment devices and for their subscriptions to cloud-based services, up to a total of $100,000 expenditure.

A 20% deduction is also available on external training courses which upskill employees in fields such as cloud computing, cyber security and web design.

Cost of living tax offset

This will grow in the 2021-2022 income year – the final year of the ‘Low and Middle Income Tax Offset’ (LMITO), which is to be phased out. When you file your tax return in the second half of this year, it will be the last time you'll benefit from this relief.

Annual tax cuts worth between $255 and $1,080 had been given, depending on your taxable income, to people earning below $126,001 a year.

Practically all LMITO recipients will receive a one-off payment, worth $420 for its final year of operation.

Cost of living payment

If you’re on a government payment, you could be eligible for a ‘cost-of-living payment’ worth $250. This will be paid automatically in April.

The $250 payment will be exempt from taxation and will not count as income support for the purposes of any income-support payment.

Fuel excise

The fuel excise on diesel and petrol will halve from March 30, from 44.2 cents per litre to 22.1 litre. This will last for six months. On September 28, the fuel excise will revert to 44.2 cents per litre.

PAYG

Many small businesses that regularly pay the ATO a portion of their expected tax liability are currently subject to a 10% ‘uplift’ rate, which adds a significant buffer onto their scheduled payments. Those that end up paying more than their actual liability, can apply for a refund at the end of the financial year.  

The new tweak will see businesses pay a 2% uplift rate through the 2022-23 financial year, aiming to improve the cashflow of around 2.3 million taxpaying businesses.

Patent box scheme

This has been extended to cover developments in agriculture and low emission technologies.

Flood affected small businesses

Disaster funding is on the way for flood-affected communities in Queensland and NSW helping towards recovery and disaster resilience activities through 2022-23. $800,000 in funding will be made available to bolster the Regional Small Business Support Program in 2023, to assist small businesses impacted by flooding in northern NSW and Queensland.

Paid parental leave scheme

The current system of 18 weeks’ paid leave, plus two weeks of ‘dad and partner pay’ will become 20 weeks of paid leave, fully sharable between parents.

Contact us

If you’d like to discuss any of the above, our network of accountants would be glad to hear from you. We are here to help with all of your tax, accounting and advisory needs and we offer a free, no obligation initial consultation. Call us on today on 1300 513 332 or enquire here.

Date published 29 Mar 2022 | Last updated 9 Jul 2022

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our multiple locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

1300 513 332

Or contact us