On Tuesday, 9th May, Federal Treasurer Hon. Jim Chalmers handed down the 2023/24 Federal Budget, a second delivered by the Albanese Government, providing an outlook into the Government’s priority to create a “responsible and sustainable” economic strategy, in the face of continued inflation, rising cost-of-living, and global financial volatility.

Acknowledged as being the beginning of a multi-Budget Treasury plan to return the Australian economy back to a sustained and
reoccurring surplus, the 2023/24 Budget revealed a predicted surplus forecast for the 2022/23 Financial Year – a first in 15
years.

The announced measures aim to balance appropriate restraint by the Federal Government, whilst addressing three key focuses of cost-of-living relief, growing the economy, and ensuring Australia’s economic resilience. The measures also work to assist Australian’s financially against continued slow financial growth and uncertainty.

We breakdown the main measure of the Federal Budget 2023/24 and how these change may affect you and your business.

Directors’ Note

Welcome to the AGR summary of the Federal Budget for 2023.

As seems to be the new normal, all the contentious policies were announced in the weeks leading up to the actual
budget night to gauge taxpayer’s (voter’s) feedback.

This was a Budget to assist with cost of living rather than a Budget to provide a forward strategy to increase
productivity and economic growth for Australia as a whole.

The budget surplus is a surprise and may even be larger depending on the final royalties received from our mining
industry and the continued PAYG receipts from having low unemployment. A short-term sugar hit rather than a sustained
energy release.

The additional superannuation tax on large individual balances was already announced, so too the new cashflow
headache of paying superannuation for employees on each pay day. Even though both policies do not come into effect
for a couple of years, both requiring planning now to avoid future headaches.

A nice winner for small business was the increase in the instant asset write off level for FY24 from $1,000 to $20,000.
This will help businesses continue to invest where appropriate considering higher input costs and volatile consumption
patterns that exist at present.

Businesses and households receive some support to assist with energy efficiency upgrades, which over the long term
will be a positive for the community.

The Build-to-Rent programs get a boost to assist with investment decision-making by the larger players. These
programs apply to projects with 50 apartments or more.

A short introduction this year as the pages that follow provide a great summary of the Federal Budget and a well worth a
read.

Feel free to contact your Archer Gowland Redshaw adviser if you have any questions on the contents of our report.

 

Individual Taxation Measures & Assistance

As part of this year’s Federal Budget, the Treasurer delivered a number of key measures impacting both individual and families.

These measures aim to assist everyday Australians combat the increasing cost-of-living crisis through ‘meaningful impact’, supporting the “most vulnerable Australians”, and allow for individuals and households to prepare for the future.

 

Federal Budget Measures for Businesses

From a business perspective, this year’s Federal Budget highlighted measures to support cash-flow and create avenues to combat inflation and rising business costs.

The measure provided do not provide any immediate cash injections, however revise current legislation to provide greater tax concessions and benefits.

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