The Federal Budget was handed down on Tuesday 29 March 2022.

Tax Roundup PDF

Key measures include:

• Cost of living initiatives – the legislation for these measures passed Parliament on 30 March. See
• The 6 month, 50% reduction in the excise and excise-equivalent customs duty rate that applies to petrol and diesel. This applies to all other fuel and petroleum based products except aviation fuels.
• The $420 increase to the low and middle income tax offset – this applies to the current financial year and will be triggered when taxpayers lodge their tax return
• The one-off $250 cost of living payment to some Australian resident social welfare recipients – this amount will be paid in April
• The increase to the Medicare Levy and Medicare Levy Surcharge Income Thresholds
• Changes to the Corporations Act to streamline Employee Share Schemes rules where participants do not have to pay or borrow to participate in the scheme
• The temporary reduction in the GDP uplift factor for tax instalments to 2% for the 2022-23 income year
• Lowering of the concessional and general safety net thresholds for the pharmaceutical benefits scheme; and
  The specific deduction for COVID-19 test expenses of individuals.
• Extension of the Home Guarantee Scheme
• Extension of the ‘Patent Box’ tax regime to agriculture and emissions reduction
• The digital and skills tax boost for businesses with an aggregated turnover below $50m that offers $120 deduction for every $100 spent on skills and training, or technology.
• Corps Act changes to expand access to Employee Share Schemes.