Budget 2022/2023 - October Update

Treasurer, Jim Chalmers announced the revised 2022/2023 budget on 25th of October 2022. This second Budget for 2022-23 updates economic forecasts following the May 2022 Federal election. The key takeaways effecting businesses and individuals include:

• Five-point plan for cost-of-living relief – The Budget stipulates childcare, expanding paid parental leave, medicines, housing and increasing wages as key pillars.

• LMITO Removed – The 2022-23 October Budget did not announce any extension of the low and middle income tax offset (LMITO) to the 2022-23 income year. The LMITO has now ceased and been fully replaced by the low income tax offset (LITO).

• Increased funding for Tax Avoidance – The Government has boosted funding for the ATO Tax Avoidance Taskforce by around $200 million per year over four years from 1 July 2022, in addition to extending this Taskforce for a further year from 1 July 2025.

• Digital currencies not a foreign currency – the Budget Papers confirm that the Government is to introduce legislation to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency.

• Paid Parental Leave (PPL) scheme – to be expanded from 1 July 2023 so that either parent can claim the payment. From 1 July 2024, the scheme will be expanded by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026.

• Child care subsidy – maximum CCS rate to be increased from 85 per cent to 90 per cent for families for the first child in care and increase the CCS rate for all families earning less than $530,000 in household income.

See below a link with further information provided by the NTAA.