HOW DOES THIS BUDGET AFFECT YOUR TAX === BUDGET 2022-23 HIGHLIGHTS

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INDIVIDUALS

  •  Low- and Middle-Income Tax Offset of $1080 will be increased for one year (2021-22) to $1500. The calculation will be based on income levels of everyone as explained below:

Taxable income (TI)

 LMITO 2021-22 (current)

 LMITO 2021-22 (proposed)

 

 $0 - $37,000

 $255

 $675

 

 $37,001 - $48,000

 $255 + ([TI - 37,000] x 7.5%)

 $675 + ([TI - 37,000] x 7.5%)

 

 $48,001 - $90,000

 $1,080

 $1,500

 

 $90,001 - 126,000

 $1,080 - ([TI - 90,000] x 3%)

 $1,500 - ([TI - 90,000] x 3%)

 

 $126,001 +

 Nil

 Nil


Ø  Low-i

  •  Low-income tax offset for 2021-22 and 2022-23 (unchanged)

Taxable income (TI)

 Amount of offset

 

 $0 - $37,500

 $700

 

 $37,501 - $45,000

 $700 - ([TI - $37,500] x 5%)

 

 $45,001 - $66,667

 $325 - ([TI - $45,000] x 1.5%)

 

 $66,668 +

 Nil

 
  •   Personal Tax Rates will remain unchanged.

 Taxable income ($)

 Tax payable ($)

 

 0 - 18,200

 Nil

 

 18,201 - 45,000

 Nil + 19% of excess over 18,200

 

 45,001 - 120,000

 5,092 + 32.5% of excess over 45,000

 

 120,001 - 180,000

 29,467 + 37% of excess over 120,000

 

 180,001+

 51,667 + 45% of excess over 180,000

 
  •  Super Guarantee rate will rise from 10% to 10.5% for 2022-23.
  •  Costs of taking a COVID-19 test to attend a place of work are tax deductible for individuals from 1 July 2021

BUSINESS

  •  Small and medium businesses will be able to deduct an additional 20% of expenditure incurred on external training courses provided to their employees though Australian Registered Training Organization. Bonus 20% deduction for the expense incurred from 7.30pm 29th March 2022 till 30 June 2022 will be available in 2022-23. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred. Some exclusions will apply, such as for in-house or on-the-job training.
  •  Small and medium businesses will be able to deduct an additional 20% of eligible expenditure supporting digital adoption such as portable payment devices, cyber security systems or subscriptions to cloud-based services. Bonus 20% deduction for the expense incurred from 7.30pm 29th March 2022 till 30 June 2022 will be available in 2022-23. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred.

SMSF

  •  Super pension draw downs - 50% reduction extended to 2022-23

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