The Federal Government handed down its 2023-24 budget last night, with cost-of-living measures headlining the forecast and related coverage.
While there weren’t too many measures squarely targeted at middle- or higher-income earners, we’ve taken a quick look at a few that may be of interest to your clients.
Superannuation
As the government had foreshadowed, Australians with very large super balances were among the budget losers, with a higher tax rate coming for those with more than $3 million in their nest eggs.
About 80,000 Australians who have $3 million or more in super will find themselves paying 30 per cent from 2025.
There’s also a plan to change the way super is paid into Australians’ accounts, with employers to make super payments on payday, rather than quarterly. The government said it would allow younger people in particular to earn more in compound interest.
Tax
The planned stage-three tax cuts are still coming into effect next year, which will mean the 37 per cent tax bracket will be abolished, while the top tax bracket threshold will be lifted from $180,001 to $200,001.
The move is aimed at tackling bracket creep and will cost the budget $69 billion over four years.
Small businesses
To try to improve cashflow support, small businesses with an annual turnover of less than $10 million will immediately be able to deduct eligible assets that cost less than $20,000 next financial year.
There will also be a tax break for small businesses that invest in energy-efficient heating and cooling, on top of the $500 in bill support for SMEs.
Finally, to help small businesses fend off cyber-attacks, the government said it would provide funding for “training in-house cyber wardens”. The Council of Small Business Organisations Australia will manage the training.
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