Australian Federal Budget 2022/23 | For Homeowners and Small Businesses

The Australian 2022/23 Federal Budget is here, and with it comes some big updates and changes, particularly for homeowners and small businesses. The Australian Government also plans to focus on delivering cost of living relief and funding for women’s health and safety.

In this article, we unpack the changes that will impact homeowners and small businesses to find out how they may help you reach your finance goals sooner.

How the Federal Budget can help homeowners

Regional Home Guarantee Scheme – The newest scheme to come out of the Federal Budget this year is the Regional Home Guarantee Scheme. As part of this scheme, the government will provide 10,000 places each year to support home buyers and permanent residents with purchasing or constructing a new home in a regional area, with a deposit as little as five per cent. The scheme will be reserved for residents who have not owned a home in five years.

How the Federal Budget can help first home buyers

First Home Guarantee Scheme – One of the major changes to the budget that affects first home buyers is the expansion of the First Home Guarantee Scheme (also known as the First Home Loan Deposit Scheme). From the 1st of July 2022, 35,000 places will be made available each year, which is more than double the current number of places. This scheme allows first home buyers to purchase a home with only a five per cent deposit, without having to pay lenders mortgage insurance. Click here to find out more.

Family Home Guarantee – From the 1st of July 2022, the number of places offered as part of the Family Home Guarantee will double to 5,000 per year (it was originally announced that 10,000 places would be made available over the course of four financial years). This scheme helps single parents to own a home sooner. Click here to find out more information on this scheme.

First Home Super Saver Scheme – The last update that might be of interest to first home buyers is the increase in the amount of voluntary contributions first home buyers are allowed to withdraw as

part of the First Home Super Saver Scheme (FHSSS). From the 1st of July 2022, the maximum lifetime amount of voluntary contributions that can be released from your superannuation under this scheme will be increased from $30,000 to $50,000. Click here to find out more information.

How the Federal Budget can help small business owners

Streamlining Business Interactions with the Australian Government – The Australian Government is aiming to help small businesses with a focus on streamlining business interactions with the government. This will include:

• Reducing compliance costs
• Streamlining reporting requirements
• Improving cash flow for small and medium businesses.

Lower Taxes – The government will provide more than $21 billion in tax cuts to small businesses between 2015-16 and 2024-25. They will also deliver $2.6 billion in tax cuts in FY 2022-23.

This means small businesses may have more funds available to employ more workers or purchase new equipment.

Technology Investment Boost – As we’re living in a digital world, the government hopes to encourage more businesses to go digital and utilise innovative tools and services. Small businesses that have an annual turnover below $50 million will be able to deduct an extra 20 per cent off any costs or expenses associated with digital uptake. Click here to learn more.

Skills and Training Boost – Lastly, any small businesses that offer eligible external training courses for upskilling employees will receive a 20 per cent bonus deduction to help cover these costs.

If you would like to discuss your options with a professional or learn more about the government schemes available to you, get in touch with your local MoneyQuest finance specialist today. We can assist with all your finance needs!

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