On May 9th, this year’s Australian Federal Budget detailed the government’s plans for the upcoming year, giving us a firm idea of what public money will go towards. And, with the inflation rate still over the Reserve Bank of Australia’s goal, the 2023 Budget had much to consider.
Let’s take a look at the primary points of The Budget and what it means for different members of the public.
Small Businesses
Small businesses are some of the biggest winners of the Australian Federal Budget, with various forms of financial support coming their way. Some of the most notable changes are:
- $23.4 million to aid 15000 businesses build protective measures against cyber threats.
- The Energy Bill Relief Fund grants power bill rebates to one million small businesses. This amount depends on the business location, with Victorian businesses estimated to save $325 and New South Wales businesses to receive $650 from July 1st.
- Businesses with annual turnovers of less than $10 million regarding assets used and installed are viable for a $20,000 instant asset write-off. This is great for small businesses that need multiple assets, as the threshold applies to each one as long as they get used between 2023 and 2024.
Low-Income Renters
Those receiving support under the Commonwealth Rent Assistance are eligible for more support under 2023’s Budget plan. CRA rates can rise to a maximum of 15% from September 20th, which has the potential to help those struggling with low income significantly.
Welfare Recipients
While not all welfare recipients will benefit from the latest budget, a handful of welfare recipients will. Let’s look closer at these figures;
- JobSeeker and income support payments are receiving overall funding of $4.9 billion, seeing payments rise by $40 per fortnight. This change will occur from September 20th, with fortnightly payments for a single person going from $693.10 to $733.10.
- JobSeeker base rates are currently higher for those over 60s, but this will change for those over 55s. This expansion will benefit an estimated 50,000 Australians in this age bracket, increasing payments by $92.50 per fortnight.
- Energy bill relief equates to $3 billion provided by federal and state funding, estimated to help over 5 million households with deductions on power bills racking up to $500.
Healthcare Sectors
One of the most pivotal healthcare winners is Aged Care Workers, who will receive a 15% pay rise under the new budget. On the other hand, eight new Medicare urgent care clinics will increase their opening hours, keeping their doors open for extended periods ensuring patients can get the care they need.
Parents
Single parents will benefit from a $1.9 billion extension on single parenting payments, in which single parents take home higher payments for a further six years due to the age bracket being raised from 8 to 14. As a result, single parents will have $176.90 extra per fortnight.
The Medicare Bulk Billing will enable young children to have free doctor consultations, further helping low-income families receive support.
Click here for further information regarding the recently released Federal Budget for 2023, or contact us at Accounting Tax Solutions today