The 2022-23 Budget is safe and ballot box friendly with a focus on jobs, cost of living, home ownership, and health.

Key initiatives include:

• A 6-month, 50% reduction in fuel excise with effect from midnight Budget night
• A $420 cost of living tax offset for low- and middle-income earners from 1 July 2022
• A one-off $250 economic support payment to some social security payment recipients
• For small business, a $120 tax deduction for every $100 spent on training employees and digital adoption

But it is also a Budget that drives digitisation. Not just to support innovation but to streamline compliance, create transparency and more readily identify anomalies. Single touch payroll was the first step, the PAYG instalment system, trust compliance, and payments to contractors are next.

Beyond compliance, accountants and advisers are uniquely positioned to assist clients to capitalise on the benefits of the Government’s push towards innovation and investment in new technology. Not just the $120 tax deduction for every $100 spent on training employees and digital adoption, but also the expansion of the patent box tax concessions. There are opportunities for those pushing boundaries.

On the economic front, Australia’s unemployment rate is at 4%: the lowest rate in 48 years with the rate forecast to reach 3.75% in the September quarter of 2022.

Real GDP is forecast to grow by 4.25% in 2021‑22. And, by 3.5% in 2022‑23 and 2.5% per cent in 2023‑24.

The deficit for 2022‑23 is expected to be $78 billion or 3.4% of GDP. Gross debt as a share of the economy is expected to peak at 44.9% of GDP at 30 June 2025 (5.4% lower and 4 years earlier than projected at MYEFO).

Read our summary of the 2022-23 Federal Budget here.

Read our detailed report of the 2022-23 Federal Budget here.

If you have any questions about how the new budget affects you, your family, or your business, get in touch with Avance today by email at avance@avance.com.au or call us on 1300 620 345.