In the recent Federal Budget, Josh Frydenberg delivered the treasurer’s report, which addressed many measures aimed at helping Australia’s economy recover after the two-year slump from the COVID-19 pandemic. Some of the key business takeaways from the 2022 federal budget include halving the fuel excise, encouraging consumer spending and streamlining PAYG reporting.
1. Cuts to the petrol and diesel excise
The Government confirmed the petrol and diesel excise will be halved for the next six months. Frydenberg announced, “Australians will save 22 cents a litre every time they fill up their car.” The cut to the fuel excise came into effect from the end of March, and now we can reap the benefits of this legislation.
2. Consumer spending
To encourage consumer spending, a number of initiatives were announced to reduce the cost of living. It is hoped these initiatives will have flow on effects for most businesses.
Some of the initiatives include:
- $420 one-off tax offset for over 10 million low-and-middle income earners
- From 1 July 2022, there will be an expansion of the low and middle income tax offset of $1500 for singles and $3000 for couples
- $250 ‘Cost of Living Payment’ to be delivered to six million pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders
3. Future streamlining of Pay As You Go (PAYG) reporting
Companies that choose to have Pay As You Go (PAYG) instalments calculated on current financial performance will be able to have the information extracted from their accounting software with some tax adjustments. This provides the opportunity for small businesses to digitise their accounting, to reduce set PAYG tax for reduced business performance each BAS quarter. Some Government consultation still needs to be undertaken, with key stakeholders such as tax agents and digital software service providers such as MYOB, however the roll out is expected to come into effect by 1 January 2024.
4. Changes to Government grants programs
Eligibility is limited to grant programs directed at businesses impacted directly by public health directives and were significantly disrupted as a result, and includes the following:
- NSW Accommodation Support Grant, Commercial Landlord Hardship Grant, Performing Arts Relaunch Package, Festival Relaunch Package, 2022 Small Business Supports Program
- QLD COVID-19 2021 Business Support Grant
- SA COVID-19 Tourism and Hospitality Support Grant, and COVID-19 Business Hardship Grant
If you would like more information about the 2022 federal budget, you can read more on the MYOB website. Acacia is an accredited MYOB platinum partner for Exo and Advanced business software. If you’re interested in taking your business to the next level, please contact us to find out more.
Disclaimer: Acacia is not an authorised tax agent. Should you have any further queries, please contact the ATO or your authorised tax agent or accountant.
