2022-2023 Federal Budget

Federal Treasurer Josh Frydenberg delivered the Government’s annual budget on Tuesday night. The Treasurer declared the Coalition’s budget supported a “dramatic and material improvement to the bottom line”.

In the lead-up to the federal election, the spending package focused mainly on individuals and “cost of living relief in a targeted and temporary way”. The relief measures included one-off payments and an immediate 50 per cent cut to the fuel excise, which should trickle down to the user in the next fortnight, lasting until September.

You can read the Government release on the 2022-2023 Budget in full.

With a forecast deficit of $78 billion in 22-23, the package also included some incentives for business, relevant to ADIA members.

Technology Investment Boost

Small businesses with annual turnover of less than $50 million will have access to a new bonus 20  per cent deduction for the cost of expenses and depreciating assets that support digital uptake, up to $100,000 of expenditure per year. The boost is available immediately until 30 June 2023.

Skills Training

Small businesses with annual turnover of less than $50 million will have access to a new bonus 20 per cent deduction for the cost of external training courses delivered to their employees by providers registered in Australia. The initiative is available immediately until 30 June 2024.

The Instant Asset Write-off rule is still in play

The Government highlighted savings from previous deregulation including a reduction to the company tax rate and increased access to small business tax concessions. Though no new reform was announced Tuesday.

The increased Instant Asset Write-off is also still available. Originally released in March 2020 until June of the same year, the purchase threshold increased from $30,000 to $150,000 (per asset) and expanded access to include businesses with aggregated annual turnover or income of less than $5B. The instant asset write-off is available until June 2023.

Read the ‘Delivering for Small Businesses’ package.
 

COVID-19 Winter Response Plan

The Treasurer briefly outlined the COVID-19 Winter Response Plan, including a $6 billion spend to ensure the transition to an open economy is insulated from increased cases of COVID-19 and Influenza during the colder months. The spend includes priority access to treatment for vulnerable populations, maximising access to vaccinations and testing, health system resilience, public communication, and a sizeable PPE investment for the National Medical Stockpile.
 

The Healthcare Package

Immediately following the budget announcement in Parliament, the Department of Health released further information outlining the healthcare package. You can find this here. 

Included in this information, Minister for Health and Aged Care, the Hon Greg Hunt confirmed the ongoing funding of dental services to eligible Australians in Tuesday’ s budget, ‘Dental and oral health is a key part of primary care and the Government is supporting the continuation of the Federation Funding Agreement (FFA) on Public Dental Services for Adults with $107.8 million, for an additional 12 months, to 30 June 2023,’ Minister Hunt’s release stated.

As well as the COVID-19 strategy, the main healthcare focus on Tuesday night was the continued measures taken following the Royal Commission into Aged Care Quality and Safety, along with a substantial package for mental health support services.

Healthcare and hospitals were also a key part of the Regional Accelerator Program, outlining heavy investment in several regional areas across Australia.

At a glance

Further line items that will no doubt be of interest to members include more affordable childcare, changes to paid parental leave and the Regional Accelerator Program, which includes funding for modern manufacturing and the Supply Chain Resilience Initiative.