Federal Budget 9 May 2023 tax measures

Category Budget measure
  1. Costs of living relief measures costing $14.6b over 4 years
  2. Means tested electricity bill relief for eligible households and businesses
  3. From 12 December 2022, eligible electric vehicles are exempt from Fringe Benefits Tax (FBT). Employees may also use salary sacrificing arrangements.
  4. Home buying scheme to have an expanded definition for family and friends
  5. Eligible persons will be able to purchase 2 times as many PBS listed medicines saving $1.2b
  6. Up to $1,500 worse off because of the cessation of the low and middle income tax offset (LMITO) saving $11b
  7. Smokers to pay a further $3.3b in additional tobacco excise over 4 years commencing 1 September 2023
  8. The passenger movement charge will increase to $70 from $60 from1 July 2024
  1. The single parent payment has been extended to until the youngest child is 14 years old costing $1.9b
  2. Additional childcare subsidies costing $55.3b over 4 years
  3. Also see "Individuals" above
Small to Medium Businesses
  1. The instant asset write-off will be limited to $20,000 for each asset from 1 July 2023 for businesses with less than $10m in turnover
  2. Eligible SMEs can apply for up to $20,000 in tax relief to invest in equipment to cut their energy bills (eg. convert from gas to electricity, installing more efficient equipment) costing $314m
High Net Worth & Multinationals
  1. $2.4b in higher taxes payable over 4 years by the oil & gas sector through the Petroleum Resource Rent Tax (PRRT)
  2. $3.3b in additional tobacco excise over 4 years
  3. $7.6b in additional GST arising from a GST compliance program
SMSFs & Superannuation
  1. Superannuation amounts to be paid to your superannuation fund each pay
  2. From 1 July 2025, earnings on superannuation balances over $3m will be taxed at a rate of 30% (not 15%) raising $900m over 4 years
Property investors
Managed Investment Trusts to benefit from a lower final withholding tax rate of 15% for build to rent housing projects with 50 or more apartments
Share investors
Retrospective tax changes to the franking credit system to 2016. Franking credits to be denied in connection with capital raisings and share buy backs saving $66m over 4 years.

Disclaimer: This webpage was last updated on 10 May 2023. The information in this document is provided for general information and reflects our understanding of the Federal Budget measures as at the date of publication from information provided. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Budget measures announced by the Commonwealth may be subject to the passage of legislation in the future. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on your specific circumstances.

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