The federal government’s first Budget has officially arrived. Promising to relieve cost of living concerns, target investment for a more resilient economy, and “begin the hard yards of Budget repair”, it was intended to be responsible in uncertain times, according to Treasurer Jim Chalmers.
From increased paid parental leave to tax cuts on electric vehicles, there are numerous new measures in Budget 2022 that affect the business community.
Dynamic Business breaks down some of the key announcements for you:
Taxes
- $200 million per year over four years to the ATO Tax Avoidance Taskforce to pursue new priority areas of observed business tax risks, including multinational enterprises
- Digital currencies like Bitcoin will continue to be excluded from the Australian income tax treatment of foreign currency to maintain its current treatment
- Extend the ATO Shadow Economy Program for a further three years to target shadow economy activity
- Payments from certain state and territory business grants, made prior to 30 June 2022, can be made non-assessable, non-exempt (NANE) for income tax purposes, subject to eligibility
- Increased penalties to $50 million or 30 per cent of turnover for breaches of competition and consumer law
- Introduction of new reporting requirements for large multinationals, Australian public companies, and tenderers of Australian government contracts, to enhance the tax information they disclose to the public
Environment and sustainability
- Battery, hydrogen fuel cell, and plug-in hybrid electric cars will be exempt from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars
- $141.1 million over 10 years as part of a realignment of investment in carbon capture technologies
- $20.3 million over four years to establish an outreach program towards participation in carbon markets and low emission technologies by Australian farmers and land managers, including First Nations peoples
- $62.6 million over three years to support small to medium enterprises to fund energy efficient equipment upgrades
- $9.6 million over 5 years from 2022–23 to support Australia’s workforce to transition to a clean energy economy
- $1.8 billion for environmental and heritage protection
Workplace
- $9.4 million over three years to establish a trial of a New Jobs Program to create up to 200 job opportunities in remote locations with thin labour markets
- $42.5 million over four years to implement recommendations of the Respect@Work Report, such as funding Working Women’s Centres in all states and territories and establishing a one-stop shop for workplace sexual harassment information
- $8.9 million over three years to establish a Productivity, Education and Training Fund to support employer and union representatives
- $7.9 million over four years for the Fair Work Commission to support the uptake of enterprise bargaining for small businesses
- $2.0 million over three years to develop a Carer Friendly Workplace Framework for employees with caring responsibilities to enter and remain in the workforce
- $20.2 million over four years for the Fair Work Commission to establish the Pay Equity and Care and Community Sector expert panels
Family
- $4.7 billion over four years to deliver cheaper child care
- $43.9 million over four years for measures that support the National Agreement on Closing the Gap targets and improve early childhood outcomes for First Nations children
- $531.6 million over four years towards Paid Parental Leave Scheme reforms to reach a total of 26 weeks by 2026
Education and training
- $15.4 million over four years to establish the Startup Year program to deliver income contingent Higher Education Loan Program loans to up to 2,000 recent graduates, postgraduate and final year undergraduate students per year
- $491.8 million over four years to boost higher education and strengthen Australia’s university system
- $2.7 million over two years to deliver a review of Australia’s higher education system
- $871.7 million over 5 years to provide 480,000 fee-free TAFE and vocational education places in industries and regions with skills shortages
- $50.0 million over two years from 2022–23 to establish a TAFE Technology Fund
Tech
- $11.5 million over four years to the Australian Public Service Commission to establish an APS Digital Traineeship Program to support early to mid-career transitions into digital
- $5.8 million over five years to the Women in STEM and Entrepreneurship program
- $4.8 million over four years to develop Australian quantum technology
- $9.9 million over four years to the ACCC for initial work on the establishment of a National Anti-Scam Centre
Industry
- $15.0 billion over seven years to establish the National Reconstruction Fund (NRF) in seven priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables; defence; and enabling capabilities
- $5.4 billion over seven years to support economic growth and development across regional Australia
- $50 million over three years to fund grants for critical minerals projects
- $9.6 billion infrastructure package for the construction of road and rail projects across Australia
Migration
- $42.2 million over two years for the Department of Home Affairs to increase visa processing capacity for high-skilled migrants in Australia’s permanent Migration Program
- Places in the 2022-23 23 permanent Migration Program will increase to 195,000
More to come.
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