2022/23 Budget Overview

The 2022 Morrison Government budget has been released, but who is walking away a winner? And who was overlooked?

Housing & Transport

The cost of living is on the rise again, but will the new budget alleviate some of the pressure?

For parents, there is a $346 million cash injection to enhance Paid Parental Leave. Single parents will also be eligible for an additional break. There’s a further cash injection to extend childcare services where the supply is lacking.

The government has announced estimated savings of 22 cents a litre due to slashing the fuel excise in half for the next six months. For families driving two cars, that equates to a savings of $700 over six months.

It’s a big win for first-time buyers, with the announcement the Home Guarantee Scheme is to be extended and doubled in size. First-time buyers will be able to purchase a new or existing home with just a 5% deposit. For single-parent homes, the pressure to produce a deposit will be alleviated by requiring a 2% deposit.

Local councils are set to receive $500 million for priority projects. Meanwhile, a further $880 million is projected for transportation needs to build and upgrade existing infrastructure. There are new rail projects to connect and reduce commute times for Brisbane to the Sunshine Coast.

COVID Response

The Government has taken steps to support small businesses in their COVID recovery as well. When a small business spends $100 on training employees, they receive a tax deduction of $120. The same again for every $100 digital technology spend. Additionally, they can claim an additional 20% deduction for external training.

There is also a $6 billion preparation budget for new COVID-19 variants and handling winter illnesses. Additionally, an extra billion dollars has been allocated to extend the vaccine rollout program.

Workers

In addition to new or expanded programs aimed at helping indigenous Australians, disadvantaged youth, and people with disabilities to find employment, there is other good news for workers. Employers will receive a wage subsidy for taking on new apprentices, with a cash award allocated for new apprentices as well. While this move has a dedicated $2.8 billion, there is a further $3.7 billion set aside to create almost a million training places to provide businesses with skilled workers. The big takeaway from this sector of the budget is the desire to encourage people into trades by providing apprenticeships.

Environment

The environment piece of the budget is two-fold, with support investment allocated to low emission technologies and further allocation for wind energy and solar. As always, there is a continued investment in alternative energy.

Health

There are a variety of offerings that will benefit women, pensioners, and rural Australians. However, the big push is for all Australians to seek health checks that were delayed or put on the back burner by the pandemic. There’s a further $547 million in the budget to expand mental health services, such as community-based and digital support.

Superannuation

The 50% drawdown requirement reduction has been extended to June 2023. This requirement determines how much a retiree can draw from superannuation to qualify for tax concessions. The purpose of this change is to allow retirees to satisfy requirements without selling assets.

Tourism

Tourism took a major hit during the pandemic and the government has dedicated $146.5 million to help the sector recover.

The Losers

Despite the dedication to tourism recovery, the campaigners hoping for a reduction in the federal beer excise have been disappointed. The subject was not broached in the budget.

Though there was discussion about student debt waivers, it did not come to fruition. While student debt is interest-free it is adjusted for inflation.

There’s not much help for people struggling to pay their rent. The Government instead wants to encourage renters to purchase. While there are plenty of benefits for potential homeowners there isn’t any relief for existing homeowners who may be struggling to pay their mortgage.

Despite the pandemic and COVID spending, public hospitals aren’t as lucky. There is no increase in public hospital spending.

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*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information.  If there are any issues you would like us to discuss with us arising from this article, please contact us*

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