Federal Budget Snapshot 2022
The 2022 federal budget is planning for a stronger future, delivering more jobs, and working towards achieving unemployment below 4%. It is expected that the unemployment rate will fall below 4% this year which would be the first time in almost 50 years. The budget includes investing in stronger defence, health, education, women’s safety and delivering relief for Australians regarding the cost of living. The budget supports small businesses and has committed in investing in infrastructure to build our future.
2022 Budget Snapshot
Taxation
- Eligible low to middle income earners will receive up to $1,500 for a single income household or up to $3,000 for a dual income household.
- The Government will also provide a one-off income tax exempt payment of $250 to help 6 million eligible people.
- 20% deduction on training and upskilling employees for eligible small businesses
- In 2022-23 the government plans to assist over 12 million taxpayers with the personal income tax plan, worth up to $2,565 for individuals or $5,130 for couples.
Infrastructure
- The Government is committing to an additional $17.9 billion for infrastructure projects
- $7.4 billion over 12 years for water infrastructure to regional communities.
Housing
- From July 2022, the maximum of voluntary contributions that can be released under the First Home Super Saver Scheme will be increased from $30,000 to $50,000.
- First home buyers scheme expanded from 10,000 places to 35,000 places a year
- Expanding the Home Guarantee Scheme to 50,000 places per year.
Businesses
- Over $140 million to support the recovery of the Australian tourism sector.
- $2.8 billion apprenticeship incentive scheme to increase the number of qualified trades people and wage subsidies for employers who take on these new apprentices
- $8 million for Australia Small Business and Family Enterprise Ombudsman to offer business planning and to enhance financial capability.
- $5.6 million investment to support small businesses reduce time, cost and stress
Superannuation
- Extension of the temporary reduction of the minimum drawdown requirement until June 2023
Temporary fuel price reduction
- The fuel excise will be halved until September 2022 to temporarily reduce fuel prices.
Australia has had a remarkable economic recovery with jobs returning to the pre-pandemic level faster than any major economy. There are more Australians in the workforce than ever before, the unemployment rate has fallen to the lowest level in 48 years. The health and economic support by the Government during the pandemic assisted in the strong economic recovery.