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McKinley Plowman Federal Budget Update 2023-24
The 2023-24 Federal Budget was handed down on Tuesday 9 May 2023 by Treasurer Jim Chalmers of the Albanese government. The budget will return to a $4 billion surplus this financial year, followed by a $13.9 billion deficit the following year. Treasury forecasts under this budget inflation will fall from 6% this year to 3.25% next year, with wages rising to 4% the next financial year, suggesting potential return to real wages growth.
Here are the highlights from the budget:
- $14.6 billion cost-of-living package, including higher JobSeeker and other welfare payments, rent assistance, electricity bill assistance, and expanded eligibility for single parent payments. The JobSeeker base rate will increase by $40 per fortnight, while the higher JobSeeker payments for Australians 60 and older will be extended to include those 55 and older.
- Threshold increase on the Instant Asset Write-Off for Small Businesses.
- Small Business Energy Incentives – up to $20,000 in tax deductions available.
- Small Business Lodgement Penalty Amnesty.
- $5.7 billion investment in Medicare, including tripling bulk billing incentives.
- Rent assistance to increase by $31 per fortnight to address rising rents.
- Revenue Raising Measures:
- A 15% global and domestic minimum tax for large multinational companies.
- Tax on super balances over $3 million.
- Increase to the tax on offshore gas companies.
Note these Budget measures are subject to the passage of legislation, however it is unlikely that there will be any issues there.
At McKinley Plowman, we’re dedicated to helping our clients make the most of the measures announced in the budget. If you require any assistance or further information about the contents of the Federal Budget, and how they might affect you as an individual or a business owner, please don’t hesitate to reach out. Our dedicated teams in the areas of accounting, taxation, bookkeeping, superannuation, and finance are on hand to assist.
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