Federal Budget 2022-2023

On 25 October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government.

The 2022-2023 Budget focused on a stronger and more resilient economy, responsible budget repair, cost of living relief and delivering the Labor election promises. Focus areas included family and childcare support, education incentives, affordable housing, healthcare and climate change initiatives.

Dr Chalmers stressed that the 2022-2023 Budget was solid, sensible and suited to Australia's current conditions.

Personal Tax

Within the 2022-2023 Budget, the Government did not announce any personal tax rates changes.

Personal Tax Scale 2024-2025 - Detailed in the 2018 Budget

The Government did not announce any further changes to the 2018 Budget, which announced that they were changing the personal tax rates detailed below:

1 July 2024 - 30 June 2025

Taxable Income	Tax on Income
$0 - $18,200	NIl
$18,201 - $45,000	19% for each $1 over $18,200
$45,001 - $200,000	$5,092 plus 30% for each $1 over $45,000
$200,001 and over	$51,592 Plus 45% for each $1 over $200,000

Childcare, Parent Leave and regional housing key areas of focus

The government announced that it will invest $4.7 billion over the next four years to mark Early Childhood Care more affordable for families.

Additionally, the government is investing $531.6 million over 4 years from 2022/2023 to expand the Paid Parental Leave scheme.

The Government has further announced that it will provide $350 Million, over 5 years, to deliver an additional 10,000 per year of affordable dwellings.

Increase in funding to ATO and regulatory bodies

The Government will provide $80.3 million to the ATO to extend the Personal Income Taxation Compliance Program for two years from 1 July 2023.

In addition, the Government has boosted funding for the ATO Tax Avoidance Taskforce by $200 million per year from 1 July 2022.

Multinational tax compliance is also on the Government’s radar.

Super downsizer contributions eligibility age reduced

The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age.The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.

In addition, the Government has delayed the SMSF residency changes and it will not proceed with the former government’s proposal to change the annual audit requirement for certain SMSFs.