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Better Targeted Super Concessions (The $3M Cap)
Treasurer Dr Jim Chalmers unveiled the proposed Better Targeted Super Concessions as a new tax on super in February 2023...
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We have summarised the key points from the 2022-2023 budget, that we believe will have the most impact on our clients.
Please keep in mind that all budget measures are proposals and will require the passage of legislation to become effective.
Summary points for Individuals
Cost of living is at the centre of the 2022 budget.
In an attempt to address growing cost of living pressure, the 2022 budget has the following inclusions:
From 1 July this year, over 10 million individuals will benefit from a one-off $420 cost of living tax offset. Together with the extension of the low and middle-income tax offset for 2021-22, eligible taxpayers will see their tax reduced by up to $1,500 for a single income household, or $3,000 for a dual-income household.
Other than those that do not require the full offset to reduce their tax liability to zero, all LMITO recipients will benefit from the full $420 increase. All other features of the current LMITO remain unchanged. Consistent with the current LMITO, taxpayers with incomes of $126,000 or more will not receive the additional $420.
To help Australians most in need the Government is providing a new one-off, income tax-exempt payment of $250. More than half of those who will benefit are pensioners. It will be paid automatically to all eligible pensioners, welfare recipients, veterans, and eligible concession card-holders in April 2022.
No date has been confirmed for payment.
The fuel excise tax will be halved as a temporary measure to reduce the cost of petrol for Australian motorists. This means the amount of tax drivers pay at the pump will be cut to 22.1 cents a litre, from 44 cents per litre.
The ACCC will monitor, to ensure the measure is passed on at the Pump.
We're here to help
If you have any questions or concerns about the proposals from the Federal budget announcements, please contact your Ulton Advisor to discuss.
Want to learn more about the other announcements from the 2022 budget? Click on the links below to go through to the specific summary or view the entire summary here.
Source:
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Treasurer Dr Jim Chalmers unveiled the proposed Better Targeted Super Concessions as a new tax on super in February 2023...
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