The level of interest in the 2022-23 Federal budget is unprecedented.
The cost of living has risen, and the Government is proposing to put in some short-term fixes to assist with these issues.
However, what about the long-term for you and your family?
The good news is that there is not much change to superannuation.
If you can benefit from Government funding and learn how to manage your home budget better, you will be in good stead to survive the winter.
Here are the major announcement in the 2022-23 Federal budget.
Cost of living package, payment and tax offset
The total cost of the cost of living package is $8.6 billion.
Australians earning under $126,000 will receive an additional $420 tax offset in the 2021-22 financial year.
There will be a one-off tax-exempt cash payment of $250 for eligible pensioners, welfare recipients, veterans and concession card holders.
Temporary fuel excise cut
A 50% cut to the rate of fuel excise, from 44.2 cents per litre to 22.1 cents per litre for six months.
The Government extended the 50 per cent reduction in the superannuation minimum drawdown requirements for a further year to 30 June 2023.
The Family Home Guarantee will be extended with an extra 5,000 spots made available each year from July 2022 to June 2025.
The First Home Guarantee will be extended for a third year with places increasing from 10,000 to 35,000 each year from July.
A new Regional Home Guarantee that will support eligible citizens and permanent residents who have not owned a home for five years to purchase a new home in a regional location with a minimum 5 per cent deposits. There will be 10,000 spots available per year to June 2025.
New and amended listings will be added to the Pharmaceutical Benefits Scheme (PBS) at a total cost of $2.4 billion.
The PBS safety net threshold will also be reduced from $1,542.10 to $1,457.10 for general patients and from $326.40 to $244.80 for concessional patients, at a total cost of $525.3 million.
$547.0 million will be spent over five years to implement reforms through the National Mental Health and Suicide Prevention Plan.
COVID response package
Spending of $2.6 billion will be directed towards the procurement and distribution of rapid antigen tests (RATs) and COVID-19 related personal protective equipment (PPE).
An extra $1.0 billion over two years for the continued rollout of the COVID-19 vaccines.
There will be an additional $892.1 million in funding over two years to support the continued health response, more than half of which will be committed to pathology to improve detection of COVID-19.
Funding of $146.5 million over three years to support the recovery of the tourism sector and $543.5 million over two years to support the aviation sector.
$1.3 billion of funding over six years from 2021-22 towards reducing all forms of family, domestic and sexual violence against women and children.
$3.7 billion to establish a new National Skills Agreement with the capacity to deliver an additional 800,000 training places.
$1.3 billion over five years towards a new Australian Apprenticeships Incentive System and other measures to support employers to engage and retain new apprentices.
Investment of $988.2 million towards a university research reform package driving university-industry collaboration, workforce mobility and research translation and commercialisation.
An additional $458.1 million over five years will be provided to support older Australians in the aged care sector with managing the impacts of the pandemic.
This includes $215.3 million over two years to fund an $800 bonus payment for aged care workers.
Spending of $468 million over five years will be provided to further implement the Government’s response to the Royal Commission into Aged Care Quality and Safety.
Small businesses, with aggregated annual turnover less than $50 million, will be able to deduct a bonus 20% of the cost of business expenses and depreciating assets that support digital uptake, up to $100,000 of expenditure per year.
Small businesses will also have access to a bonus 20% deduction for the cost of external training courses delivered to their employees by providers registered in Australia.
The government has announced an additional $17.9 billion towards road, rail, and community infrastructure projects.
$2.3 billion for the North-South corridor in South Australia, $1.6 billion towards the Beerwah-Maroochydore rail extension in Queensland, $1.2 billion on the Beveridge interstate freight terminal in Victoria and $1.0 billion on the Sydney to Newcastle and Tuggerah to Wyong rail upgrade in NSW.
The Local Roads and Community Infrastructure program will be extended until 2025-26 at a cost of $501.7 million.
A $6.9 billion dollar package to expand investment in transformation water infrastructure projects. This includes $5.4 towards the construction of Hells Gate Dam on the Upper Burdekin River in North Queensland.
Spending of $1.3 billion over six years to improve regional telecommunications and internet access. Including $480 million to significantly upgrade NBN fixed wireless services in regional areas.
The government announced an extra $328.3 billion towards the Modern Manufacturing Strategy, including $250.0 million for the Integration and Translation Streams of the Modern Manufacturing
New Regional Accelerator Program that will cost $2.0 billion over five years and will provide funding to regional businesses and communities to access programs targeted to local priorities in areas including infrastructure, manufacturing, training, research and education.
Climate spending and disaster relief
An additional $1.0 billion over nine years towards the protection of the Great Barrier Reef.
$446.1 million over five years to increase energy security, maintain affordable and reliable power, and reduce the cost of deploying emissions technologies.
The Government expects to spend more than $6 billion on disaster relief and recovery as a result of the recent flooding in Queensland and NSW.
$9.9 billion of funding over 10 years to establish a Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers (REDSPICE) package.
Have any questions about the budget and what it means for you? We are always happy to help. Contact the Gallagher team at here.