Low and Middle Income Tax Offset (LMITO) – has not been extended. The maximum tax offset of $1,500 is only applicable for the 2022 financial year and has not been extended for the 2023 financial year.
SMSF Audits every 3 years Abandoned – the 2019 Budget proposed that if SMSF had a good compliance history then SMSF audits could occur every 3 years rather than every year. This has been thrown out, so SMSF audits need to be done every year.
Cash Payments Proposal Abandoned – the 2019 Budget proposed that a maximum limit for cash payments made to businesses for goods and services of $10,000. This has been abandoned, therefore no limit on amount of cash payments received.
Personal Income Taxation Compliance Program – This program will be extended for another 2 years to 1 July 2025. The focuses are on over claiming deductions and incorrect reporting of income.
Federal Government expands Paid Parental Leave –
The current PPL is available for up to 18 weeks for the birth parent while the Dad and Partner pay is available for up to two weeks.
Two weeks will be added each year from 2024 to 2026. This will increase the total to 26 weeks from July 2026.
Eligibility criteria applies to qualify for the above, however this will be made easier with the introduction of a higher Family Income test of $350,000.
This will better opportunities for both the birth mother and the Dad or Partner to spend more time with their new born as well as the ability to return to their former employment. Expanding Paid Parental Leave
Childcare Subsidy Increasing –
Child care subsidy rates will increase from July 2023 for 4 years to 30 June 2027 for families with combined earnings less than $530,000 per year for their first child.
If families’ earnings are below $80,000 than the child care subsidy rate will increase from 85% to 90%. The rate will decrease 1% every $5,000 increase in family earnings per year, until combined family income reaches $530,000.
Families will continue to receive the higher subsidy rates for any subsequent children aged 5 years and under, up to 95%. The higher child care subsidy will stop 26 weeks after the oldest child’s last child care session or when child turns 6 years of age. Child Care Subsidy Increasing
Improving Housing Supply and Affordability – Government is putting measures in place to help the major housing issues for Australians.
The measures used to help combat the increasing expanding housing pressures are as following:
– A goal of supplying one million new homes in well located places over 5 years from 2024.
– Over the 5 years, supply 10,000 more affordable housing with 7 star rating energy efficiency (or a state/territory’s minimum standard) by Accord. This is further to the 30,000 new affordable dwellings provided by Housing Australia Future Fund. Also it has been announced that states and territories will aim to extend the 10,000 new homes to 20,000 new homes through contributions to Accord.
– Providing more ability for institutional investors such as super funds, fund managers etc. to invest in the affordable housing sector. This helps institutional investors as the investment in housing provides low risk and steady returns in income and growth; and helps the housing market for Australians by the injection of capital from the institutional investors.
National Housing and Homeless Plan – focused on the housing and homeless and new strategies to provide access to housing.
National Housing and Affordability Council – provides independent advice and ways to enhance the current housing policy, provide additional homes and affordability of the homes. $15.2 million dollars has been provided to assist.
Housing Australia Future Fund – is a $10 billion dollar fund aimed at funding the increasing housing supply.
o 20,000 new dwellings in the social housing sector, 4000 will be for women and children facing domestic violence situations and family; and older women facing homelessness.
o 10,000 new affordable dwellings – frontline workers will have access to these dwellings
Ways the Government is providing access to Housing
– Help to Buy – shared equity scheme – a scheme where the Government will provide a contribution to help purchase a new or existing home.
– Regional First Home Buyer Guarantee – from 1 October 2022, regional first homebuyers will be able to purchase a new or existing home with a minimum deposit of 5%. 10,000 homes will be available each financial year.
– Exemption of Home Sales Proceeds from Pension Testing – an initiative to get older Australians to scale back their houses and allowing more access to housing for younger Australians. The exemption period has increased from 1 year to 2 years, providing more time to buy, renovate or build a new home prior to your pension being affected.
– Downsizer Contributions Age Limit Increased – this is a contribution to your super fund up to $300,000 from the proceeds of the sale of your own home. This will be available for Australians aged 55 or older. Please note, your home must have been owned for 10 years or more by yourself or spouse, and you have applied the full or partial main residence exemption.
– Defence Home Ownership Assistance Scheme – this scheme is providing $46.2 million dollars to help Australian Defence Force members purchase their own home.
Improving Housing Supply and Affordability