After an extraordinary 12 months with our Victorian economy locked down twice, the federal Treasurer has unveiled a $74.6b spending spree. Major business initiatives in infrastructure spending, job creation, housing affordability & tax relief on innovation & technology showcase early signs of an election on the horizon.
THE KEY ANNOUNCEMENTS WERE:
BUSINESS
Small Businesses can continue to claim a full tax deduction on assets purchased up to a value of $150,000 until 30 June 2023.
INNOVATION & TECHNOLOGY
To further enhance our medical and biotech industry, Australian companies that create medical or biotech products and patent these products in Australia will be rewarded and taxed at 17% rather than 30%.
$117.8m will be allocated over the next 4 years in robot developments and world-leading artificial intelligence projects to further develop & retain Australia’s world-class artificial intelligence.
To seize on the $250b annual global gaming development market, the treasurer announced tax relief for game developers who will receive a 30% refundable tax offset on expenditure from 1 July 2022.
Small-scale distilleries are eligible to receive cashback on all excise tax they pay up to a cap of $350,000.
SUPERANNUATION
All employees will now qualify to receive Super Contributions from their employment, removing the min $450 income per month threshold previously required to qualify for super contributions.
To supercharge an individual’s retirement savings, an individual aged 60 (previously 65) can now make up to $300,000 in downsizer super contributions into super.
INFRASTRUCTURE
Funding to create an additional 170,000 new apprenticeships and traineeships and 163,000 new training facilities to help upskill employees.
$15.2B in national infrastructure spending, which include $3.4B for the Victoria, covering:
$2b for Melbourne Intermodal Terminal.
$380m for the Pakenham Roads Upgrade,
$250m for the Monash Roads Upgrade,
$30.4m for the Western Port Highway Upgrade,
$51.1m for Princes Hwy East, between Rosedale and the NSW border.
$56.8m for the Hall Road Upgrade.
$203.5m for local road and community infrastructure projects, and $170m for road safety projects.
HOUSING
From 1 July 2022, the First Home Super Saver Scheme will rise from $30,000 to $50,000.
A further 10,000 places will be available under the New Home Guarantee for the first home buyers scheme.
In addition, from 1 July 2022, a further 10,000 places will be made available over 4 years for “single parents” to build a new home or buy an existing home with a deposit of as little as 2%.
TAX - INDIVIDUAL
The $1,080 Low and Middle Income Tax Offset (LMITO) will remain for the 2022 financial year.
Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
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