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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.
2022 Federal Budget - Social Security and Family Assistance Summary
Funding to implement reforms in response to the Royal Commission
Effective 2021/22 onwards
The government will provide $468.3 million over five years from 2021-22 to further implement the government’s response to the Royal Commission into Aged Care Quality and Safety. This funding is to continue ongoing reforms announced in the 2021-22 Federal Budget. This will include spending in five key areas:
This spending brings the total response to the Royal Commission into Aged Care Safety and Quality to $18.8 billion[5].
Safety net threshold lowered for the Pharmaceutical Benefits Scheme
Effective 1 July 2022
The Pharmaceutical Benefits Scheme (PBS) safety net threshold will be lowered from $1,542.10 to $1,4571.10 for general patients and from $326.40 to $244.80 for concessional patients, which will allow patients to reach the safety net sooner. Concessional patients will require approximately 12 fewer scripts and general patients will require approximately two fewer scripts. On reaching the PBS safety net, concessional patients receive their PBS medicines at no cost for the rest of the calendar year and general patients receive their PBS medicines at the concessional co-payment rate, which is currently $6.80 per prescription.
The Government estimates that around 2.4 million Australians will benefit from this measure[6].
First, Family and Regional Home Guarantees
Effective 1 July 2022
The number of guarantees provided under the Home Guarantee Scheme will increase to 50,000 for three years from 1 July 2022. This will reduce to 35,000 a year on an ongoing basis.
The 50,000 guarantees will be allocated as follows:
The First, Family and Regional Home Guarantees can be used in addition to other support measures including the First Home Super Saver Scheme and state-based measures, such as stamp duty concessions and first home owner grants. Some lenders may require a deposit greater than minimum under the specific scheme.
If you have any questions or concerns about the proposals from the Federal budget announcements, please contact your Ulton Wealth Management 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 budget summary here.
Sources:
[5] Budget 2022-2023, Australia’s Plan for a Stronger Future, Guaranteeing the essential services, page 27
[6] Budget 2022-2023, Australia’s Plan for a Stronger Future, Guaranteeing the essential services, page 20
https://www.servicesaustralia.gov.au/income-test-for-commonwealth-seniors-health-card?context=21966
https://www.servicesaustralia.gov.au/assets-test-for-pensions?context=22526
FirstTech, Federal Budget Briefing 29 March 2022
MLC, 2022 Federal Budget Adviser Analysis, 29 March 2022
Wealth Management Disclaimer
Our liability is limited by a scheme approved under Professional Standards Legislation, except where we provide financial services as an authorised representative of Ulton Wealth Services Pty Ltd (holder of Australian Financial Services License No. 497721).
This communication has been prepared on a general advice basis only. The information has not been prepared to take into account your specific objectives, needs and financial situation. The information may not be appropriate to your individuals' needs and you should seek advice from your financial adviser before making any investment decisions. Sub Authorised Representative No.245052 of Ulton Wealth Management Pty Ltd. All Ulton Wealth Managers can provide financial services as Sub-Authorised Representatives of Ulton Wealth Management Pty Ltd. ABN 73 168 815 450 | Corporate Authorised Representative 460875 of Ulton Wealth Services Pty Ltd | ABN 86 614 308 628 | AFSL 497721.
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