With a federal election due within months, the 2022 Budget announced by Treasurer Frydenberg, was expected to be a friendly one. The announced measures have not disappointed, with benefits announced for many in the community and proposals outlined to aid with cost of living rises.

On the superannuation front, the Government shied away from any significant reform. The most notable announcement, as previously flagged, was a continued 50% reduction in minimum payments from superannuation pensions. This will allow self-funded retirees to retain more in their super accounts, instead of being forced to draw out money they may not need.

The Low and Middle Income Tax Offset will be maintained for the current tax year and then phased out. This temporary tax relief of up to $1,080 per annum was previously put in place to help boost spending. The maximum rebate is available to those earning between $45,000 and $90,000, and cutting out at $126,000. Anyone earning under $126,000 will have this supplemented by a further $420 cost of living tax offset. This will be paid as part of the 21/22 tax refunds. For some middle income earners, these measure combined will boost tax refunds by up to $1,500.

With petrol prices spiking due to the Ukraine conflict, the Government has offered relief. The 44.2 cents per litre fuel excise is to be reduced by half to 22.1 cents for a period of 6 months.

Cash hand outs may also be on the way, with the Government announcing payments of $250 to pensioners, welfare recipients, veterans and concession card holders.

The pharmaceutical benefits scheme safety net is being reduced for everyone, thereby decreasing the out of pocket costs for many.

Aged care will get a boost with the government committing a further $468m to further reform in this area, to boost services to the 1.3 million Australians receiving care.

$1.3 billion has been set aside to assist in addressing domestic violence against women and children. This will assist a number of programs aimed at prevention and support.

Adjustments are being made to the paid parental leave scheme with the Dad and Partner pay scheme combined with the main arrangement. This will give couples 20 weeks of paid leave, to use as they want. Single parents will now also get 20 weeks.

Business is also set to get a boost through a $800m small business and sole trader package. Measures in this package include lowering PAYG tax instalments, increased deductibility for technology investment and reducing compliance cost for payroll tax administration.

An investment of over $150m was announced in order to address worker shortages. It will achieve this through supporting jobseekers in finding employment and assisting vulnerable members of society entering the workforce.

In addition, $365m was pledged to assist in creating a further 35,000 apprenticeships. This is achieved through the delivery of a wage subsidy for new roles.

While there was much pleasant news in Mr. Frydenberg’s speech, the introduction of these measures will depend on the upcoming election. Those looking for opportunities should also pay attention to the Opposition’s reply and the election result. For further information on how these announcements may affect you, please speak to your adviser.

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