Superannuation

The Treasurer, Mr Josh Frydenberg, handed down the Federal Budget for 2022-23 on 29th March 2022. In an election year, the focus of Budget was inevitably on pleasing the electorate, with large amounts spent on lower and middle income earners, pensioners and welfare recipients and a 50% reduction in fuel duty all geared towards capturing the votes of “Middle Australia”. For individuals, the centrepiece was the increase in the low and middle income tax offset, which is welcome. People earning up to $126,000 will get a rebate of $420 in excess of what they would have got anyway through the existing tax offset. All you have to do to get it is lodge a tax return for 2021-22 – so funds should start to flow to taxpayers from 1 July 2022. Unfortunately, this is just a short term measure. Next year, the low and middle income tax offset disappears completely – meaning that people earning up to $126,000 will see a tax rise of up to $1,080. It’s hard to see how that will do anything to help cost of living pressures over the medium and long term. Worse, just as most Australians will experience this tax rise, the wealthiest […] read more

The Treasurer, Josh Frydenberg, delivered the Federal Budget for 2021 on 11 May. The following is an update of the key tax and superannuation measures. Personal Tax Low Income Offsets – LMITO retained for 2021-22: The low and middle income tax offset (LMITO) will continue to apply for the 2021-22 income year up to the maximum amount of $1,080. Consistent with current arrangements, the LMITO will be received with the notice of assessment after individuals lodge their tax returns for the 2021-22 income year. Low income tax offset: The low income tax offset (LITO) will also continue to apply for 2021-22 income year. The maximum amount of the LITO is $700. Personal Tax Rates unchanged for 2021-22; Stage 3 start from 2024-25 unchanged: In the Budget, the Government did not announce any personal tax rates changes, having already brought forward the Stage 2 tax rates to 1 July 2020 in the October 2020 Budget. The Stage 3 tax changes are expected to commence from 1 July 2024, as previously legislated. Business Tax Temporary full expensing extended by one year: The Government will extend the temporary full expensing measure until 30 June 2023. It was otherwise due to finish on 30 June 2022.  All other elements of temporary full expensing will remain unchanged. Loss carry-back extended by […] read more