The Federal Government has handed down the 2022-23 Budget, with the Treasurer unveiling big-spending with millions of Australians set to reap the benefits.

Billions of dollars will be allocated to businesses, individuals, and health services to build on our economic recovery. With an election set for May The Federal government has announced a financial platform to help Australians with the price of fuel, groceries, housing, and medical costs.

Here are the key takeaways from the 2022-23 Federal Budget. 

Infrastructure

• $7.1 billion for regional hubs
• $6.9 billion announced for significant water infrastructure projects
• $3.1 billion for the Melbourne Intermodal Terminal Package
• $480 million of additional funding allocated to improve NBN fixed wireless network
• $328.3 million for supporting projects under the Modern Manufacturing Strategy and National Manufacturing Priorities
• A significant number of infrastructure projects have received funding in this budget, largely focusing on regions and transport
• The regional investment package includes infrastructure projects in the Hunter, Pilbara, the Northern Territory and north and central Queensland. A further $7.4 billion is going towards dams and water projects, mostly towards Hells Gates Dam in Queensland.

Small business

Small businesses looking to build their digital firepower can claim bonus tax deductions on eligible expenses. Firms can claim a further 20% on assets like laptops or servers, up to a total of $100,000 expenditure. Similarly, a further 20% deduction is available on external training courses to upskill employees in forward-looking fields like cloud computing, cyber security, and web design.

Disaster funding is on the way for flood-affected communities in NSW and Queensland. Some $150 million from the Emergency Response Fund will flow towards recovery and disaster resilience activities through 2022-2023, budget papers say. Elsewhere, $800,000 in funding will bolster the Regional Small Business Support Program in 2023, assisting flood-impacted small businesses in northern NSW and southern Queensland.

Apprentices

• $5,000 payments will be available for new apprentices for the first two years of their training.
• Up to $15,000 in wage subsidies is available for employers who hire new apprentices

Fuel cost

• The fuel excise will go from 44.2 cents per litre and will be cut in halve for a period of six months ending September 28^th, 2022

PAYG changes

Changes to the pay-as-you-go (PAYG) tax model are on the way. 

Many small businesses that regularly pay the Australian Taxation Office a portion of their expected tax liability are currently subject to a 10% ‘uplift’ rate, adding a significant buffer onto their scheduled payments. Those that end up paying more than their actual liability can apply for a refund at the end of the financial year.  

The new tweak, confirmed by Frydenberg, will see businesses pay a 2% uplift rate through the 2022-23 financial year, allowing them to keep more of their cash in the here and now.

This shift, along with updates to the tax reporting regime, is projected to improve business cash flow to the tune of $1.85 billion, the Treasurer said. However, those tweaks will require new legislation, and a Coalition government post-election.

One-off tax saving

• A one off tax saving will apply to those who earn below $126,000. More than 10 million Australians will benefit from a one-off tax saving of $420

Agriculture

Much of the funding targeting the agriculture sector is focused on strengthening biosecurity. This includes $135.6 million over five years to go towards mostly a range of biosecurity threats, but also funding for agricultural shows and trade events to promote agribusiness.

Funding is also allocated to future drought readiness, which will hopefully benefit agriculture businesses into the future.

Health and human services

• Additional $6 billion to support existing health programs
• NDIS will receive $39.6 billion over four years for the NDIS program
• $547 million in additional funding for mental health will be added on top of the $2.3 billion that was invested in last year’s budget.

Aged care

• $50.4 million will fund 4,000 new nursing placements to deliver vaccinations to aged care residents and staff
• $37.6 million will establish grants for up to 2,907 training places in infection prevention and control for qualified nurses
• $345.7 million for residential aged care pharmacy services

COVID-19

• $6 billion over the next four years will be invested to support vaccines, treatments, extension to temporary telehealth item numbers, and preparing for the next phase in the pandemic
• $1 billion to extend the vaccine roll out
• $984 million allocated to extend the national partnership on the COVID-19 response supporting the states and territories over two years
• $132.5 million for the investment in RATs and PPE over the next year

Tourism

• Over three years the tourism industry will receive $146.6 million to support its recovery from the pandemic. A large amount of the money will be put towards marketing and support for travel agents and tour service providers.

Paid parental leave

• Mums, dads, and partners will be able to access 20 weeks of paid parental leave, this is to be shared over two years
• Single parents will be able to access the full 20 weeks of paid parental leave

Cost of living payment

• Pensioners, welfare recipients, veterans and concession card holders will be eligible for a one-off payment of $250, this will go to six million Australians