Please find here our 2022 Federal Budget Update. The Government has projected a 2022/23 deficit of $78 billion with Commonwealth net debt to rise to $714.9 billion (31,1% of GDP). Clearly, this pre-election Budget is aimed at wooing voters with an $8.6 billion cost of living package that slashes petrol tax by 22 cents per litre, gives 10 million low and middle-income earners a one-off bonus tax rebate of $420 and hands $250 cheques to six million pensioners and welfare recipients.
Closer to home, the 2022 Budget does not include significant changes for our client stakeholders with some of the key impacts outlined below:
- An extension of the 50% reduction to the minimum superannuation pension drawdown requirements into the 2022/23 financial year. This was to end on 30 June 2022.
- A one-off $420 increase in the Low & Middle Income Tax Offset (LMITO) for individual taxpayers of up to $1,500 ($3,000 for dual income families).
As the Government is firmly in election mode, it is not beyond possibility that additional announcements are made in coming weeks, along with both the formal Budget response and counter offers by opposition parties, particularly the Labor party.
Clearly, with the imminent Federal election, the ability to swiftly legislate any proposals contained within this Budget is limited.
Please do not hesitate to contact Allan, David or Matthew should you have any immediate queries in relation to the impact of the proposed Budget changes on your personal circumstances.