Federal Budget Summary 2023-24

Posted at 12:39h in News by Simmons Livingstone

0 Likes

The 2023-24 Federal Budget, presented by Treasurer Josh Frydenberg on May 9th, 2023, aims to boost the economy and create jobs. Here are some key points and how they could affect you:

Budget Surplus: After 15 years, the budget is projected to have a surplus of $4.2 billion, attributed to increased income from exports and personal income tax due to low unemployment.
Tax Reforms: Stage three tax cuts remain unchanged, while the low and middle-income tax offset has not been extended. The instant asset write-off for small businesses will be developed but with a reduced threshold of $20,000. Stage three tax cuts will abolish the 37% tax rate and lower the 32.5% rate to 30%.
Child Care Subsidy: The government will spend $4.5 billion to deliver more affordable child care, including increasing Child Care Subsidy rates from July 2023. Maximum CCS rates will be lifted, and transparency and compliance measures will be implemented.
Social Security: Job Seeker payments, Youth Allowance, Parenting Payment, Austudy, ABSTUDY, Disability Support Pension and Special Benefit will receive an additional $40 per fortnight. JobSeeker assistance will be expanded for those aged 55 and over. Single parenting payment will be extended and rent assistance will increase by 15% for eligible participants.
First Homes: The first home and government guarantee loans will be extended and eligibility criteria will be expanded. Siblings and friends can use first home buyer programs together and those who have not owned a house in the past 10 years can access the scheme.
Superannuation: The Superannuation Guarantee will increase to 11% from July 1, 2023. Employers will be required to pay superannuation contributions every payday starting from July 1, 2026. Earnings from superannuation balances over $3 million will be taxed at 30% from 2025.

For Business Owners:

Instant Asset Write-Off: The scheme is extended to June 30, 2024, allowing businesses to deduct the full cost of eligible depreciating assets.
Corporate Tax Rate Reduction: From July 1, 2024, the corporate tax rate for businesses with a turnover of less than $50 million will be reduced to 26%.
R&D Tax Incentive: Reforms aim to target genuine R&D activities better and reduce misuse.

For Individuals:

Personal Income Tax Changes: The top thresholds of the 19% and 32.5% tax brackets will increase, reducing taxes for individuals earning between $45,000 and $200,000.
Superannuation Guarantee Increase: The rate will rise from 10% to 12% over the next four years, starting July 1, 2023.
Social Security Changes: The age at which people can access the Age Pension and the Pensioner Concession Card will increase and there will be adjustments to income and assets tests for certain social security payments.

These changes could significantly impact your wealth creation and retirement funding strategies. Therefore, it’s important to consult with your SLA financial advisor to understand how these changes affect your circumstances and develop a plan that maximise your financial goals.

For more information, please contact us at 1800 618 800 or via email at admin@simmonslivingstone.com.au.