The 2023 Federal Budget, announced on 10 May, focused on cost of living relief through lower power bills, higher welfare payments and more small businesses and housing support.
Some of the proposed measures include electricity bill relief for pensioners, Commonwealth Seniors Health Card holders and other concession cardholders with an electricity bill credit of up to $500, and a $650 credit for eligible small businesses.
“What a difference seven months makes since the last Federal Budget,” said Carrick Aland Director Greg Burton. “Small business featured multiple times in Budget announcements being earmarked for support to encourage startups, investment in skills and training and adopting digital technologies.”
Budget measures also include an expansion of the instant asset write-off for another year and, for eligible businesses turning over less than $50M, an additional 20% deduction on spending that supports electrification and efficient energy use.
Whilst there were no announced changes to personal income tax, Medicare levy low-income thresholds for singles, families and seniors or pensioners will increase from 1 July 2022. However the low and middle tax offset (LMITO) has ended as of 30 June 2022 affecting low and middle-income earners with taxable income below $126,000.
Tax concessions will reduce on certain superannuation accounts for individuals with a total super balance of more than $3 million from 1 July 2025. The fortnightly rate of JobSeeker payments will increase by $40 from September 2023, while the maximum rates of Rent Assistance will increase by 15%, providing recipients with up to $31 extra per fortnight.
Children aged under 16, pensioners and other Commonwealth concession cardholders will receive better access to free healthcare, with bulk billing incentives being tripled for the most common consultations. The government will also increase the number of Home Care packages by 9,500 in 2023/24, which may help reduce the wait time for individuals expecting a package to be assigned to them.
The Budget also expanded eligibility for the First Home Guarantee and the Regional First Home Buyer Guarantee to joint applications by friends, siblings and other family members from 1 July 2023.
All announced Budget measures are only proposals and may or may not become law. Read our full overview at Federal Budget Summary or call Carrick Aland on 4669 9800. Greg Burton is an accredited FPA Aged Care Specialist.