Sneaky budget update!

Budget Time...again!

Another month, seemingly another budget. If you find yourself asking “didn’t we already have one of these in March?” then you’d be right on the money!

Last night Labor handed down its first Federal Budget since the election (bit of a mid-year type review), So here’s a few of the things Treasurer Jim Chalmers announced last night, laid out without the political spin.  

Small Business

Not a huge update here. There is $15.1 million dollars earmarked over two calendar years from January 1, 2023, for the Small Business Debt Helpline and NewAccess Program however. This is to help and support the financial side and wellbeing of small business owners.  

This program will give small business owners the chance to speak and get alongside trained mental health professionals with the program helping to provide up to six structured sessions for them.  

Jobs

Big focus on finding people to work in Australia with heaps of talk lately on the shortage of workers here, so the government are lifting the migration cap to 195,000.  

There will also be 480,000 fee-free TAFE spots provided by the government. Go them! The states and territories have even banded together (for once right..) to develop a National Skills Agreement. This means there will be 180,000 TAFE places next year alone provided!  

Housing

Want to buy a house? The Government wants you to as well! Well. Sort of anyway. They’re wanting to build 1 million affordable homes in five years starting from 2024, the big focus here being on regional areas, while also offering the Regional First Home Buyer Guarantee to 10,000 people each year from October.  

Self-Managed Super Funds

A few little changes here. Downsizing is a thing that the government are trying to push so that younger families can get into the market. The government will allow more people to make down-sizer contributions to their super, reducing the minimum eligibility age from 60-55.  

This contribution allows people to make a one-off post tax contribution to their super of up to $300k per person from the proceeds of selling their home.  

Stage Three Tax Cuts

Still going ahead. The policy has been spared so far and those earning between $45,000 and $200,000 will pay no more than 30 cents of every dollar they earn in tax come July 1, 2024. This was one that was slated to possibly be omitted, but it’s staying put...for now.  

Also hidden among the budget was the fact that Bitcoin will no longer be treated as a foreign currency for tax purposes. The government are looking to clarify Australia’s look at digital currencies after El Salvador began regarding Bitcoin as legal tender last year.  

There is no change for other crypto for tax purposes, however.

Paid Parental Leave

On July 1, 2024 the Government will start expanding the paid parental leave scheme by two additional weeks a year until it reaches a full 26 weeks from July 1, 2026. Seems ages away right, but it’ll come up quick! Both parents will be able to share the leave entitlement as well, with a proportion maintained on a “use it or lose it” basis. This encourages and helps facilitate both parents' access to the scheme and to share it more equally. Sole parents will also be able to access the full 26 weeks!  

Childcare

Subsidised even further again! July 2023 will see the rates go from 85% to 90% subsidised for families earning less than $80,000. After that amount it’ll decrease by 1% per extra $5k of income.  

Cost of Living

The big question. What might be done with the rising inflation. The answer, not much unfortunately outside of a warning that the price of energy and gas will continue to creep up into 2023-24. What you can do, is plan! We’re always here ready to chat if you’re looking to whack a plan in place, or overall get a bird's eye look at your business to help you know where things are sitting currently.