Federal Budget 2022 The key points

Our Budget Summary provides you with the key points and an opportunity to explore further on the points that interest you the most. And, as always, you can contact us and we’ll explain how the Federal Budget may impact you.

Personal Income Tax

There will be no changes to personal income tax. Including no changes to the Stage 3 tax cuts which will take effect from 1 July 2024, and no extension of the Low and Middle Income Tax Offset, which ended 30 June 2022.

Digital Currency

Digital Currencies will not be taxed like foreign currencies. This maintains the current tax treatment of digital currencies, including the capital gains tax treatment where they are held as an investment.

The exclusion does not apply to digital currencies issued by, or under the authority of, a government agency, which continue to be taxed as foreign currency.

Business Owners

The Government will not proceed with the measure to allow taxpayers to self-assess the effective life of intangible depreciating assets, announced in the 2021-22 Budget. By doing this the government is maintaining the existing conditions.

Electric Cars

The Government will cut taxes on electric cars so that more Australians are able to afford them. The measure will exempt battery, hydrogen fuel cell and plug-in hybrid electric cars from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars ($84,916 in 2022‑23). The car must not have been held or used before 1 July 2022.

Improving the integrity of off-market share buy-backs

The Government will align the tax treatment of off-market share buy-backs undertaken by listed public companies with the treatment of on-market share buy-backs.

Superannuation

The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age. This measure is expected to take effect from 1 January 2023.

The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Both members of a couple can contribute and contributions do not count towards non-concessional contribution caps.

Plan for Cheaper Child Care

There’s a plan for cheaper child care and an increase to parental leave making the Paid Parental Leave Scheme flexible for families so that either parent is able to claim the payment. Parents will also be able to claim weeks of the payment concurrently so they can take leave at the same time.

Lifting the Income Threshold for the Commonwealth Seniors Health Card

The Government will increase the income threshold for the Commonwealth Seniors Health Card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.

Philanthropy

The Government will amend the tax law to list Australians for Indigenous Constitutional Recognition as a deductible gift recipient for donations and extend the listing of Australian Women Donors Network as a DGR for 5 years.

If you would like to know more about the Federal Budget and how it impacts you please contact paul@congdonfuzi.com.au for further reading please visit Federal Budget and Macquarie Federal Budget Summary