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Federal budget

2022/23 Federal Budget

Section: 1.0

2022/23 Federal Budget - Summary of key announcements

The Treasurer Josh Frydenberg delivered the 2022/23 Federal Budget on Tuesday 29 March 2022.

The following is a summary of the key superannuation and taxation announcements.

  • Personal tax rates unchanged for 2022/23 income year.
  • Medicare levy low-income thresholds increased for singles, families, and seniors and pensioners for the 2021/22 income year.
  • Low income tax offset (LITO) continues to apply for 2021/22 and 2022/23 income years. The maximum amount of the LITO remains at $700.
  • Low and middle income tax offset (LMITO) increased by $420 for 2021/22 income year. The initial LMITO benefit increases from $420 to $655 with the maximum benefit for individuals at $1,500 and for couples at $3,000.
  • Extension of 50% temporary reduction in superannuation minimum drawdown rates for a further year to 30 June 2023.
  • Temporary reduction in fuel excise for six months from 30 March 2022.  The excise duty rate that applies to petrol and diesel fuel will be halved from 44.2 per litre to 22.1 cents per litre. At the conclusion of the 6-month period on 28 September 2022 the previous rates will apply including any indexation that would have occurred on those rates over that period.
  • One-off $250 cost of living payment paid in April 2022 to welfare recipients  - primarily those receiving social security and/or concession card holders - to help with higher cost of living pressures.
  • The Deposit Guarantee Scheme will more than double to 50,000 places per year. The scheme cuts the deposit required to buy a home to 5%, with the Federal Government guaranteeing the other 15%. Places will be set aside for single parents - either buying their first properties or trying to re-enter the housing market. Eligible single parents can receive a guarantee with a deposit of just 2%. 
  • First Home Super Saver Scheme (FHSSS) to allow first home buyers to withdraw $50,000 from their super, up from $30,000.
  • COVID-19 test expenses incurred to attend a workplace are deductible from 1 July 2021. 
  • Existing instant asset write off rules for businesses with turnover or income of less than $5 billion extended until 30 June 2023.
  • Small business technology and investment boost: businesses with aggregate turnover of less than $50 million can deduct an additional 20 % of costs incurred on business expenses and depreciating assets that support its digital adoption from 29 March 2022 to 30 June 2023.
  This technical resource is intended for the use of financial advisers only. It is current at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements. ..

Last modified: Monday, July 11, 2022