Federal budget 2023/2024 highlights
The Federal Government released its 2023/2024 budget yesterday. We’ve put together highlights to explain some of these spending announcements, especially those targeted at addressing cost of living pressures and for people experiencing difficult life challenges.
There were no changes to personal income tax, these remain unchanged since 2021-22. The rates are as follows:
- taxable income up to $18,200 – nil;
- taxable income of $18,201 to $45,000 – 19% of excess over $18,200;
- taxable income of $45,001 to $120,000 – $5,092 plus 32.5% of excess over $45,000;
- taxable income of $120,001 to $180,000 – $29,467 plus 37% of excess over $120,000; and.
- taxable income of more than $180,001 – $51,667 plus 45% of excess over $180,000
The annual indexation of the Medicare Levy threshold will change. The family threshold increases to $40,939 plus $3,760 for each dependent child. In addition, the threshold for increases to $53,406 and the single threshold increases to $24,276.
$20 billion has been earmarked for aged care over the next four years. This includes funding for 80,000 new home care packages and a wage increase of 15 per cent for aged care workers.
The budget includes $2.7 billion for the National Disability Insurance Scheme (NDIS), including funding for additional staff and improved services.
The budget includes $2.8 billion for schools and universities, including funding for new schools and upgrades to existing facilities.
The government will invest $1.2 billion in affordable housing, including funding for new social and community housing.
For families earning under $530,000, they will see an increase to their Child Care Subsidy (CCS) rebate, which commences 10 July 2023.
The CCS percentage is calculated on income.
There’s more information, including income calculator, available on the Services Australia website.
The Federal Government has earmarked $58 million to a centre for responding to online scams and fraud. This is to address the growing number of people who’ve been victims.
The centre will share scam data across government and private sector, and “establish public-private sector Fusion Cells to target specific scam issues”.
According to the Government, 47 per cent of Australians report being exposed to fake or deceiving text messages, so $10 million has been allocated for an SMS sender ID registry to stop criminals impersonating government and industry names.
Small businesses with an annual turnover less than $10 million can access the ‘instant asset write-off’ for certain assets worth up to $20,000, from 1 July 2023. This is available until 30 June 2024.
There’s also a new Small Business Energy Incentive for businesses with turnover less than $50 million. These businesses will soon be entitled to a bonus 20 percent tax deduction for certain depreciating assets worth up to $100,000, applied to energy saving upgrades.
Further $23.4 million is being allocated to support small businesses to mitigate cyber threats.