The 2022-23 Federal Budget was released on Tuesday 29 March 2022. With the election just weeks away, this year’s budget proposed a number of measures to address the rising cost of living. This is the first budget in several years that hasn’t announced any major change to superannuation for employers or members.
Download this Budget factsheet to see some of the key proposals.
Funding to help young tradies complete apprenticeships
The Government plans to invest $2.8 billion over five years to upskill apprentices and reward employers for hiring them.
This includes:
- payments to new apprentices in priority industries of $5,000
- wage subsidies for employers who employ them of up to $15,000
A new streamlined Australian Apprenticeships Incentive System has also been proposed with a focus on those in priority trades.
Encouraging more women to take up trades
The Government is also proposing a $38.6 million investment to encourage more women to take up trade apprenticeships.
This additional support – which will include guaranteed placings, in-training support and targeted mentoring – is hoped to help more women complete apprenticeships in male-dominated trades like plumbing and bricklaying.
Rolling infrastructure investment
An additional $17.9 billion investment has been proposed for new and existing infrastructure projects across the country – largely focussing on regions and transport. These investments are expected to support around 40,000 jobs, including many in building and construction. Funding is planned to hit each state including:
- New South Wales: $1.0 billion for the Sydney to Newcastle – Tuggerah to Wyong Faster Rail Upgrade.
- Victoria: $3.1 billion for the Melbourne Intermodal Terminals.
- Queensland: $2.7 billion for Faster Rail projects from Brisbane to the Sunshine Coast and Brisbane to the Gold Coast.
- South Australia: $2.3 billion for the North-South Corridor.
- Western Australia: $441.2 million for the METRONET.
- Tasmania: $392.0 million for the Tasmanian Roads Package.
- Northern Territory: $132.0 million for the Central Australian Tourism Roads.
- Australian Capital Territory: $46.7 million for the Athllon Drive Duplication.
Initiatives from last year’s Budget that are now law
As part of last year’s Budget, the Government announced a few initiatives that are now law. These include:
$450 salary threshold for super contributions removed
From 1 July 2022, the $450 monthly threshold for the payment of superannuation guarantee (SG) contributions will be removed. This means you’ll be required to make SG contributions to all eligible employees, regardless of how much the employee is paid.
For more information read the ATO’s recent announcement.
Work test for older Australians removed
From 1 July 2022, Cbus members aged under 75 years will be able to make or receive personal (after tax) and salary-sacrificed contributions without meeting the work conditions – known as the work test or work test exemption.
The existing contribution cap limits will still apply and members may also be able to use the bring forward rule. These members will still need to meet the work test to claim any personal super contribution deductions.
For more information read the ATO’s acceptance of member contributions and work test webpage.
The Budget factsheet
Keep your employees in the loop by downloading our 2022-23 Federal Budget factsheet. For full details, visit budget.gov.au