- From midnight 29/03/22, the fuel excise will be cut in half to deliver 22 cents per litre saving at the fuel bowser.
- The outlook for real GDP has strengthened, with growth forecast to be 4¼ per cent in 2021-22 and 3½ per cent in 2022-23, before moderating to 2½ per cent in 2023-24
- Eligible small businesses will be able to deduct $120 for every $100 they spend on services that support their digital capability, including upgrades to cybersecurity systems or online sales platforms.
- From 1 July, low and middle-income earners will receive a one-off $420 cost of living tax offset. Combined with the current LMITO, those eligible will receive up to $1,500 for a single income household, or up to $3,000 for a dual income household.
- Eligible small businesses (A$50m turnover) an additional 20% tax deduction will be available until 30 June 2023 for small businesses that provide formalised skills and training to staff.
- The Patent Box tax concession will be expanded to both low emissions technology innovations & agricultural sector innovations to provide a 17% concessional tax rate on commercialisation.
- Proceeds from the sale of Australian Carbon Credit Units (ACCUs) & biodiversity certificates generated from on-farm activities to be treated as primary production income for the Farm Management Deposits (FMD) scheme and tax averaging from 1 July 2022.
- For retirees the Government has extended the 50 per cent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.
- The Government has decided to reduce the GDP uplift factor for pay as you go (PAYG) and GST instalments at 2 per cent for the 2022-23 income year. This uplift factor is lower than the 10 per cent that would have applied under the statutory formula.
- Change to Visa rules. The Government is relaxing certain work restrictions for a large range of visas and increasing country caps for Work and Holiday visas by 30% in 2022-23.
| - The Government will provide $325.0 million in 2023-24 and $327.6 million in 2024-25 to the ATO to extend the operation of the Tax Avoidance Taskforce by 2 years to 30 June 2025.
- Medicare levy low-income thresholds for seniors and pensioners, families and singles from 1 July 2021, to take account of recent movements in CPI to ensure low-income individuals continue to be exempt from paying the Medicare levy.
- The Government will modernise PAYG instalment system to enable companies to have pay as you go (PAYG) instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments. New system from 1 Jan 2024.
- ESS changes. The Government will expand access to employee share schemes so that employees at all levels can directly share in the business growth they help to generate, incl. removal of regulatory requirements for offers to independent contractors.
- ATO trust reporting assurance measure. The Government will digitalise trust and beneficiary income reporting and processing, by allowing all trust tax return filers the option to lodge income tax returns electronically.
- The costs of taking a COVID-19 test to attend a place of work will be tax deductible for individuals from 1 July 2021. Employers will not be subject to fringe benefits tax (FBT) where COVID-19 tests are provided to employees for this purposes.
- The Government extended the measure which enables payments from certain state and territory COVID-19 business support programs to be made non-assessable non-exempt (NANE) for income tax purposes until 30 June 2022.
- The Government will amend Australia’s foreign investment framework to reduce the regulatory burden faced by investors and support Australia’s economic recovery from the COVID-19 pandemic.
- Excise duty will be reduced by 50% from 30 March 2022 for 6 months. For businesses who claim fuel tax credits, this effectively reduced the FTC to zero for heavy vehicles on public roads.
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