Last night Treasurer Dr Jim Chalmers handed down his second budget, which he described as a “responsible budget”.
Australia is facing a challenging economic environment. Inflation has passed its peak but is still too high. Although still in a strong position, uncertainty on a global slowdown, persistent inflation and high interest rates are possible headwinds for the Australian economy. However, for the first time in 15 years a modest surplus of $4.2 billion was announced, mainly due to high employment rates and high commodity prices.
Some of the Budget measures include:
- Cost-of-living relief (energy bill relief and increases to childcare subsidy)
- Increases in Jobseeker and other support payments. Wage increases for aged care workers
- Tripling of bulk bill incentives for GPs
- Reduction of tax concessions for superannuation balances exceeding $3 million
- Additional funding for ATO compliance, especially on GST
- For small business
- the $20k instant asset write off will continue
- 20% incentives for electrification or more efficient energy use
- From 1 July 2026 employers will be required to pay their super guarantee (SG) entitlements at the same time they pay their wages, which will, no doubt add cash flow pressure to small businesses.
For further information regarding the Federal Budget and how it affects you and your business, please click on the below link or call your ProYou trusted advisor on 02 9064 1300.