Federal Budget: all the key points you need to know
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A rundown of the main measures that will impact accountants and small business.
The Labor government’s first budget in almost a decade has revealed the tough reality of the rising cost of living along with stagnant wage growth.
The Treasurer forecast an increase in gross domestic product of 3.25 per cent this current financial year, which will more than halve to 1.5 per cent in 2023-24.
The budget deficit for this financial year has been reduced from $78 billion down to $36.9 billion thanks to higher-than-expected commodity prices.
However, a deficit of 1.9 per cent of GDP by 2032-33 is forecast, up from the 0.7 per cent GDP expected earlier this year.
Partly responsible for the revisions are raised interest payments on debt, which will be $76 billion above forward estimates and $70 billion a year by 2032-33. Another factor is the additional cost of the NDIS, which amounts to $166 billion over the next four years and reaches $50 billion a year by 2025-26.
Dr Chalmers said that the budget was stuck with an inherited deficit and that in the short-term it would be limiting growth in spending particularly while inflation was high.
“This unwinds wasteful or unnecessary spending, redirects it towards higher-quality investments and priorities, and improves the integrity and fairness of our tax system,” he said.
Inflation is expected to peak at 7.75 per cent later this year, then average 3.5 per cent the following financial year before reducing to 2.5 per cent in 2024-25.
Funding for the ATO and ASIC
Both the ATO and ASIC received additional funding in the budget with $166.2 million to continue the rollout of the Modernising Business Registers Program and the operation and regulation of the director ID regime.
The budget also provided additional funding for the ATO’s Tax Avoidance Taskforce by around $200 million per year over four years to increase the focus on multinational enterprises and large public and private businesses.
The government said it estimated this investment would increase receipts by $2.8 billion and increase payments by $1.1 billion over the next four years.
Dr Chalmers said that this helped ensure the tax system was more sustainable “by making sure multinationals pay a fairer share of tax in Australia, by extending successful tax compliance programs, and by giving the ATO the resources they need to crack down on tax dodging.”
Cost of energy
The budget forecasts power prices to rise 56 per cent over the next two years while gas prices are expected to increase 44 per cent in the same period.
Labor’s pre-election promise of a reduction of $275 to power prices failed to be included with Dr Chalmers saying that relief now would add to inflation.
However, the government did establish a $20 billion fund for energy transmission of which $800 million would go to cutting taxes on electric cars, building an electric vehicle charging network and hydrogen refuelling stations on highways, along with solar battery storage for up to 100,000 homes.
The government announced a national housing accord with states and territories to free up land to build 1 million homes over five years with the help of the $3.3 trillion superannuation industry.
An additional $350 million was announced to deliver 10,000 affordable homes over five years from 2024.
“This will be delivered through an ongoing funding stream to help cover the gap between market rents and subsidised rents – making more projects commercially viable,” said Dr Chalmers.
“State and territory governments will build on our commitment with up to 10,000 new homes as well.”
The budget provides $531.6 million over four years in extra funding to expand paid parental leave to 26 weeks by 2026, as well as delivering $4.7 billion over four years to provide cheaper childcare for 1.26 million families.
“For two-parent families, a portion of this leave will be reserved for each parent – to encourage families to share caring responsibilities,” said Dr Chalmers.
“This is about greater equality and greater security for Australian women – and more dads doing their bit.”
Dr Chalmers said that cheaper child care would increase the number of paid hours worked by women with young children by 1.4 million hours a week in the first year alone, the equivalent of 37,000 extra full-time workers.
The government provisioned $3 billion as a response to the recent floods and declared it would fund Disaster Relief Australia to assist in deploying an additional 5,00 extra volunteers when future disasters struck.
The budget revealed $200 million a year in investment in disaster prevention and resilience through the Disaster Ready Fund.
The budget makes a $1 billion investment in fee-free TAFE alongside the states and territories to provide 180,000 places, the government’s first step in its goal for almost half a million fee-free TAFE courses for Australians. An additional $50 million would also go to a TAFE technology fund to modernise the institutions as well.
A $485 million investment was also revealed to create 20,000 new university places over the next two years for students from disadvantaged backgrounds.
Josh Needs 25 October 2022 accountantsdaily.com.au
General Advice Warning: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
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Self Managed Super Funds
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Please enjoy the links to these free tools supplied by MoneySmart – a great resource for general financial information. Please get in touch if you would like to discuss any questions that you may have as a result of using these calculators.
Tess has over 22-years experience in Chartered Accounting Firms and in this time has had a broad range of experience in superannuation, taxation, business services, and financial strategy.
Over the last seven-years, Tess has turned her attention to Financial Planning, earning a Diploma of Financial Planning in 2015 and leading the newly established financial division of the Wybenga Group as a director of Wybenga Financial.
Tess’s mission is to bring the ethics and integrity of her Chartered Accounting background to the area of wealth management.
As a woman in a male dominated field, Tess is active in promoting gender equality in the industry through various programs and mentoring opportunities.
Using her depth of knowledge and experience in tax and accounting Tess is able to demonstrate a level of competence that is unique in the Financial Planning sector.
2001 – Commenced employment with Wybenga & Partners and part-time accountancy studies
2004 – Graduated Masters of Commerce from the University of New South Wales
2005 – Admitted as an Associate Member of the Institute of Chartered Accountants Australia
2007 – Promoted to Manager at Wybenga & Partners
2012 – Appointed as Associate Director
2015 – Awarded a Diploma of Financial Planning
2016 – Appointed as Partner of Wybenga Group and Director of Wybenga Financial
B.Bus, B.Sc, CA, DipFP
Adam has over 18-years experience in Chartered Accounting Firms and in this time has had a broad range of experience in superannuation, taxation, business services, and financial strategy.
Over the last seven-years, Adam has turned his attention to Financial Planning, earning a Diploma of Financial Planning in 2015 and leading the newly established financial division of the Wybenga Group as a director of Wybenga Financial.
Adam’s mission is to bring the ethics and integrity of his Chartered Accounting background to the area of wealth management.
Combining traditional accounting and financial services has been a welcome move for Adam, allowing him to operate and advise in the financial sector that has been a long time personal passion.
Using his depth of knowledge and experience in tax and accounting Adam is able to demonstrate a level of competence that is unique in the Financial Planning sector.
2005 – Graduated Bachelor of Science from the University of Western Sydney
2005 – Commenced employment with Wybenga & Partners and part-time accountancy studies
2007 – Graduated Bachelor of Business from the University of Western Sydney
2010 – Admitted as an Associate Member of the Institute of Chartered Accountants Australia
2010 – Promoted to Manager at Wybenga & Partners
2012 – Appointed as Associate Director
2015 – Awarded a Diploma of Financial Planning
2016 – Appointed as Partner of Wybenga Group and Director of Wybenga Financial
What is an Advisory Cadetship? An Advisory Cadetship enables you to commence your career whilst attaining the necessary university qualifications by studying part-time.
How does it work? Generally, our cadets complete a relevant business or accounting degree at the University of New South Wales, the University of Technology Sydney, Macquarie University, or the University of Western Sydney.
The Firm provides 3-hours paid study leave per week to attend university. This can either be taken at the one time or broken between days depending on the individual’s requirements. In addition, the Firm provides paid study leave for both mid-semester and end-of-year exams.
We take the work life balance very seriously at Wybenga Financial and our cadets are encouraged to have a fulfilling life outside the office. A typical day will have you arriving at the office at around 8.30am with most days concluding at 5.30pm.
What are the benefits of an Advisory Cadetship with Wybenga Financial? Our cadets benefit from the following:
Career path – on completion of their degree our cadets have significant practical experience which will assist them in advancing their careers
Work helps your studies – by working full-time our cadets are able to apply their practical knowledge in the university subjects
Camaraderie with other cadets – the Firm has a number of cadets at various stages of their career
Mentoring – cadets are paired with a senior staff member who oversees their progress and training both at work and with their studies
Communication and feedback – the Firm has an open door policy which enables all cadets to interact with all members of staff including Directors
Culture – the Firm promotes a friendly social culture with a number of functions throughout the year
Modern environment – including ‘socialising’ areas such as pool table and break out area
Training – ongoing support and technical training. We also provide internal and external training on a monthly basis
Remuneration – working full-time provides a market salary and independence with salaries being reviewed every 6-months
What happens when I complete my degree? The completion of your degree is the first step of what we hope to be a long and successful career with us. The next step is the commencement of a Diploma of Financial Planning followed by completing the requirements to become a Certified Financial Planner (CFP).
There are always progression opportunities for the right cadets and we are dedicated to the long term development of our staff.
Who should apply? Current Year 12 students or first/second year University Students who:
want to commence their career in financial advisory;
are due to commence or are currently completing a part-time business or commerce degree at university with an advisory major;
want to gain valuable hands-on experience while completing their qualifications;
are looking for a friendly working environment;
are team players who display initiative;
have a commitment to self-development;
possess excellent personal presentation and communication skills; and
are motivated and mature minded.
How do I apply for an Advisory Cadetship? To apply for a Cadetship position at Wybenga Financial send us your details. Please also include in your covering letter why you wish to do a cadetship, include relevant qualities you possess, main interests / achievements, and any previous employment.
Interested candidates should initially forward a resume/covering letter of no more than 3-pages. Please provide full details of contact information (telephone or e-mail).
What if I have more questions? For further information about our Cadetship program, please send your enquiry to .