Pressed with time? We have summarized the key points on the new federal budget for you.
- Economic parameters: Inflation is expected to peak at 7.75 per cent later this year, then average 3.5 per cent the following financial year before reducing to 2.5 per cent in 2024-25.
- Funding for the ATO and ASIC: Both the ATO and ASIC received additional funding on Modernizing Business Registers Program and ATO’s Tax Avoidance Taskforce.
- Cost of energy: The budget forecasts power prices to rise 56 per cent over the next two years while gas prices are expected to increase 44 per cent in the same period. Fund allocated for energy transmission and cutting taxes on electric cars, along with solar battery storage for homes.
- Affordable housing: National housing to build 1 million homes over five years with the help of the $3.3 trillion superannuation industry. An additional $350 million was announced to deliver 10,000 affordable homes over five years from 2024.
- Young families: Extra funding allocated to cheaper childcare and expand paid parental leave to 26 weeks by 2026.
- Disaster relief: The government to fund Disaster Relief Australia, and assist in deploying an additional volunteers when future disasters struck.
- Higher education: The budget added investment in fee-free TAFE alongside the states and territories to provide 180,000 places
- Skills shortages: $42.2 million to speed up visa processing, handle the backlog and raise awareness of opportunities in Australia among skilled migrants.
- Tax breaks: The Low and Middle Income Tax Offset has not been continued. Stage three tax cuts have been kept.
- Technology: The National Broadband Network will be upgraded with a $2.4 billion spend to extend full-fibre connections to an additional 1.5 million homes and businesses.
- Small businesses: $15.1 million for tailored business mental health and financial counselling.
- Modern Slavery: Establishing an Anti-Slavery Commissioner to work with business, society and governments to address modern slavery in supply chains.
P.S.: ATO will add more compliance activities to raise extra tax for the government. This will make advanced tax planning advice more important than ever. During the next few months, we will try to deliver different online seminars focused on different topics to help you to save tax. The first one will be at 1pm on 2 November on rental properties. Here is the registration link: 10 things you should consider before buying a property. It will also be relevant to property owners who are considering changing the current ownership structure to save tax. The key takeaways in the seminar could help you to save up to tens of thousands of dollars. We look forward to seeing you there!
