The Federal Government has handed down its 2022-23 Budget which further to the Federal Budget handed down on 29 March 2022, updates economic forecasts and identifies the priorities for the new Labor Government.
COMMENTS ON THE 2022-23 FEDERAL BUDGET
Tax Summary and Highlights
In broad economic terms, the Budget estimates an underlying cash deficit of $36.9 billion for 2022-23 (and $44 billion for 2023-24). The economy is expected to grow by 3.25% in 2022-23, however, it is predicted to slow to 1.5% for 2023-24.
Inflation is expected to peak at 7.75% later in 2022, but is projected to moderate to 3.5% through 2023-24, and return to the Reserve Bank's target range in 2024-25.
The Budget does not contain major tax changes. It does seek to begin some "Budget repair work" via tax integrity measures particularly in international tax matters and in relation to debt funding by foreign controlled entities.
Briefly the taxation measures announced in the Budget are summarized as follows:
Measures in Relation to International and Business Taxation
Further to foregoing the key measures announced in the Budget in relation to Business and International Taxation are as follows:
Previous Proposals not to be Enacted
The following finance-related proposed changes have been abandoned by the current Government.