On 25 October 2022, Treasurer Jim Chalmers handed down his first Federal Budget.

The Budget focused on budget repair, cost of living relief and delivering the Labor Government’s election promises. Key target areas of the plan included family and childcare support, education incentives, affordable housing, healthcare and climate change initiatives.

Against the backdrop of economic instability, rising inflation, natural disasters and uncertainty overseas, Dr Chalmers stressed the 2022-23 Budget was solid, sensible and suited to the conditions.

HLB Mann Judd’s Federal Budget Alert provides a succinct summary of the announcements related to personal and business taxation, tax compliance, superannuation and housing measures. Contact our advisers should you wish to learn more or prepare for any matters which may affect your business or personal situation.

"This is an unsurprising Budget with few tax changes of note for individuals and SME businesses. Cross-border businesses should review the proposed new methods impacting interest deduction claims, which can apply equally to Australian companies with offshore operations."
Peter Bembrick
Tax Consulting Partner and Tax Committee Leader

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    At a glance

    Personal tax rates unchanged for 2022–2023

    In the Budget, the Government did not announce any personal tax rates changes. The Stage 3 tax changes commence from 1 July 2024, as previously legislated.

    From 1 July 2024, the 32.5% marginal tax rate will be cut to 30% for one big tax bracket between $45,000 and $200,000.

    Childcare and regional housing key areas of focus

    Families were placed at the centre of the Budget with its $4.7 billion spend on child care over the next four years.

    The Government has announced that it will establish a Regional First Home Buyers Guarantee. Its aim will be to encourage home ownership in regional locations. It also committed $350 million to build 10,000 new homes each year.

    Increase in funding to ATO and regulatory bodies

    The Government will provide $80.3 million to the ATO to extend the Personal Income Taxation Compliance Program for two years from 1 July 2023.

    In addition, the Government has boosted funding for the ATO Tax Avoidance Taskforce by $200 million per year from 1 July 2022.

    Multinational tax compliance is also on the Government’s radar.

    Oct Federal Budget Tax Compliance
    Super downsizer contributions eligibility age reduced

    The Government confirmed its election commitment to lower the minimum eligibility age for making superannuation downsizer contributions to age 55 (down from age 60).

    In addition the Government has delayed the SMSF residency changes and it will not proceed with the former government’s proposal to change the annual audit requirement for certain SMSFs.


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