Summary of key changes announced last night.

Low and Middle Income Tax Offset (LMITO)

This offset provides taxpayers earning less than $126,000 up to $1,080 as a refundable tax offset. Typically, this increases an individuals tax refund (or reduces tax payable). This was due to cease after 2021 year but has been extended for 2022 tax returns.

Temporary full expensing extension

This measure allows small businesses to claim as an immediate deduction the full cost of a depreciating asset (there is no limit on cost where as the previous limit was $150,000). This applies to any depreciating asset purchased after 6th October 2020 and was due to finish on 30th June 2022. The new finish date will be 30th June 2023.

Temporary loss carry-back extension

This measure allows small company taxpayers to carry back a loss from one year to offset a profit in an earlier year and get a refund. This initially applied to losses made in 2020, 2021 or 2022, but now includes 2023.

Superannuation Guarantee threshold

Currently an employee who earns less than $450 per month is not entitled to receive superannuation (9.5% Super guarantee). This threshold is to be removed so they become entitled to be aid super. Expected start date 1 July 2022.

Superannuation Work Test

Changes have been made to work test requirements for individuals aged 67 to 74 making it easier for individuals to contribute to superannuation if not working.

First Home Super Saver (FHSS) scheme

The maximum that can be released under this scheme is increased from $30,000 to $50,000. The existing contribution limit of $15,000 per year remains.


Should you require further information on these initiatives please contact us.