Amid the recent natural disasters, new waves of COVID-19 infections, ongoing labour market challenges, supply-chain constraints, and potential for rising inflation, it is quite remarkable that many Australian businesses have continued to maintain their resilience and optimism. It is this positive outlook that needs to be highlighted and celebrated as we forge ahead towards a more sustainable future.
So, as Josh Frydenberg delivered his fourth Federal Budget, the focus is clearly more on the short-term cost of living relief, with the Federal Election just around the corner. Longer-term measures for a sustainable future did not feature strongly and, moving forward, a budget with a significant deficit is not sustainable.
Key feacture:
Permanent Resident immigration quota of 160,000
Skill immigration increased to 109,900
New personal Tax measures
Temporary reduction in fuel excise
Immigration
Compare to previous immigration quota, there are about 30,000 increase during financial year 2022-2023. It will included 30,000 - Employer Nomination Visa; 16,652 - Skill Independent Visa; 20,000 - State or Territory Sponsored Visa, etc.
New personal Tax measures
The Government has announced that it will increase the low and middle income tax offset (LMITO) by $420 to a maximum of $1,500 per individual for 2021-22 to assist with cost of living pressures. The LMITO was previously $1,080. Taxpayers will receive the benefit of this increased offset when they lodge their tax returns from 1 July 2022.
Taxpayers earning $126,000 or more will not receive the LMITO (as was previously the case).
Temporary reduction in fuel excise
As a direct measure in response to global market conditions, for the next 6 months commencing on 30 March 2022 excise and excise equivalent customs duty that applies to petrol, diesel and other fuel and petroleum based products (excluding aviation fuel) will be halved from 44.2 cents per litre to 22.1 cents per litre. Indexation will continue but at a 50% reduced rate.
