Unpacking the Federal Budget 2022-2023

March 30th, 2022 Latest News

ACA NSW is pleased to share the following which were announced in the Federal Budget on 29 March 2022 as they will be of interest to early childhood education and care services:

Beginning March 2023 for parents whose households income is up to $350,000, instead of offering two separate payments (ie 2 weeks of "Dad and Partner Pay" and 18 weeks of "Parental Leave Pay"), the two payments will now be combined and parents can choose to split the leave between them in whatever way they choose.
$19.4 million (via a Community Child Care Fund Open Competition grant) will be available to fund up to 20 new services in disadvantaged regional and remote areas of high need, supporting greater workforce participation and better outcomes for children. The funding round will be available via GrantConnect later in 2022. Applicants will need to meet eligibility criteria that will be set out in new Grant Opportunity Guidelines and be found suitable through a competitive process.
The Boosting Apprenticeship Commencement wage subsidy that provides employers with 12 months of wage subsidy support has been extended until 30 June 2022. The subsidy is for a maximum of $7,000 per quarter for wages paid in the 12-month period from the date they start.
From 1 July 2022 to 30 June 2024, "Child Care Workers" as listed in the (Australian Apprenticeship Priority List) can receive up to $5,000 ($1,250 paid every six months for their first two years), to ensure they are supported to complete their training. And to boost the number of women in trades (eg as "Child Care Workers"), the Federal Government will also provide additional supports, such as mentoring. peer support and enterprise skills training through Australian Apprenticeship Support Network providers.
For those who provide transportation services, fuel excise taxes will be cut by 50% for the next 6 months beginning 30 March 2022 (ie from 44.2 cents per litre to 22.1 cents per litre).
From 1 July 2022 onwards, those earning up to $126,000 will receive a one-off tax offset of $420. This one-off payment of $420 will be combined with the low- and-middle-income tax offset (LMITO), meaning eligible employees will receive up to $1,500 back for single-income households or up to $3,000 back for a dual-income households.
Businesses with an annual turnover of under $50m can claim “bonus” tax deductions on eligible expenses. Claims of a further 20% on assets like laptops or servers, up to a total of $100,000 expenditure, will be allowed.
Businesses with an annual turnover of under $50m can claim a further 20% deduction on external training courses to upskill employees in forward-looking fields like cloud computing, cyber security, and web design.
Subject to eligibility, the Federal Government has proposed improvements to business cashflow via changes to the Pay-As-You-Go tax calculations. The Federal Government has proposed a reduction of the GDP “uplift” rate from 10% to 2%, a move it claims will improve the cashflow of around 2.3 million taxpaying businesses.
The previous Federal Budgets' instant asset write-off scheme will not continue past the end of the 2022-2023 financial year (ie 30 June 2023).