Ace in the Hole: Budget 2023-24
Last night the Treasurer, Jim Chalmers, handed down his second Federal Budget. The ‘ace in the hole’ of the 2023-24 Federal Budget was despite global economic uncertainty, a $4.2bn surplus; the first in 15 years driven by a surge in the corporate and individual tax take. A forecasted deficit of $13.9 billion in 2023-24 is expected to follow.
In his Budget Speech Treasurer Jim Chalmers said, “This Budget builds stronger foundations for a better future by:
- Delivering cost-of-living relief
- Strengthening Medicare
- Investing in a stronger and more secure economy
- Broadening opportunity
- Strengthening the Budget and funding our priorities”
“This Budget strikes the right balance between dealing with immediate challenges and setting Australia up for the future.”
- Energy bill relief for some households and small business.
- Encouraging doctors to offer bulk billing by tripling the incentive for children under 16, pensioners and other Commonwealth card holders.
- Businesses will benefit from temporary measures such as the $20,000 threshold for the small business instant asset write-off.
- Cost-of-living relief to individuals, increased and expanded JobSeeker payments, and better access to affordable housing.
- Changes to the Petroleum Resources Rent Tax and the confirmation of the BEPS Pillar Two global minimum tax rules set to be implemented on 1 January 2024.
- Broadening the eligibility for single parenting financial aid.
- Superannuation earnings tax concessions will be reduced for individuals with total superannuation balances in excess of $3 million from 1 July 2025.
- The ATO will receive funding over four years to reduce the tax-related administrative burden for small and medium businesses, cut paperwork, and improve the administration of student loans.
However, the budget overlooks several areas – the carry back of losses, provisional full expensing, Division 7A, as well as any reference to enhancements in technology investment and skills and training. No changes were announced to the Stage 3 personal income tax cuts legislated to commence in 2023–24.
Click HERE to read the Federal Budget Overview for further details by