Date of article: 5 December 2022
Last updated: 5 December 2022
The treasurer delivered the Federal Budget on 25 October 2022. This is a second Federal Budget for 2022-23, subsequent to the May 2022 Federal election that resulted in a change of Government.
There was no major tax changes. The Budget ‘begins’ the task of Budget repair by reducing and re-prioritisation of some spending. There is also tax integrity measures to extend tax compliance programs, including to multinationals.
The Budget delivers a five-point plan for cost-of-living relief: cheaper child care, cheaper medicines, expanded Paid Parental Leave scheme, more affordable housing, and supporting wage increase for lowest paid workers.
Superannuation
There was little changes announced relating superannuation and individual tax.
The Government will expand the eligibility for downsizer contributions to allow more people to make downsizer contributions to their superannuation by reducing the minimum eligibility age from 50 to 55 years of age.
The Government will defer the start date of the proposed relaxing residency requirements for SMSFs from 1 July 2022 to the income year commencing on or after the date of Royal Assent of the enabling legislation.
The Government will not proceed with the former Government’s proposed changing the annual audit requirement to a 3 year audit cycle for certain SMSFs.
Personal income tax
There are no changes to personal income tax rates.
Current tax rates and income threshold for 2022-23 and 2023-24 income year:
| Income threshold | Tax rate % |
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19% on amounts over $18,200 |
| $45,001 – $120,000 | $5,092 + 32.5% on amounts over $45,000 |
| $120,001 – $180,000 | $29,467 + 37% on amounts over $120,000 |
| $180,000 + | $51,667 + 45% on amounts over $180,000 |
Tax rates and income threshold for 2024-25 income year (unchanged):
| Income threshold | Tax rate % |
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 19% on amounts over $18,200 |
| $45,001 – $200,000 | $5,092 + 30% on amounts over $45,000 |
| $200,000 + | $51,592 + 45% on amounts over $180,000 |
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