Australia: 2022 federal budget announced

Measures aimed to reduce the administrative burden on businesses

Measures aimed to reduce the administrative burden on businesses

Australia’s 2022 federal budget was released today, 29 March 2022.

The KPMG member firm in Australia has summarized and analyzed the budget announcement, and its impacts on and implications for the Australian economy, business, industries, and sectors. In particular, the budget is evaluated in the context of the following topics:

  • Gender
  • Business restructuring
  • Enterprise
  • Indirect tax
  • Migration
  • Human services
  • Education
  • Cyber and critical infrastructure

The budget does not include any large corporate tax announcements as compared to previous years. However, the budget includes a number of measures aimed to reduce the administrative burden on businesses. 

In addition, the government proposes expanding the patent box regime to:

  • Agricultural sector and low emissions technology innovations, with eligible corporate income subject to a 17% effective tax rate for patents granted or issued after 29 May 2022, for years starting on or after 1 July 2023
  • Patents for medical and biotechnology innovations granted or issued after 11 May 2021

Read a March 2022 report prepared by the KPMG member firm in Australia

Opposition reply

The opposition delivered on 31 March 2022 its reply to the government’s 2022 federal budget released on 29 March 2022. 

The opposition's reply provides a review of the opposition’s key fiscal policies in the lead-up to the 2022 federal election. 

The most prominent features of the reply were the opposition’s plans for boosting productivity and for the aged care sector. The plan for productivity improvement focuses on renewable energy, manufacturing, infrastructure, workplace skills, and more affordable childcare. On aged care, the announcements targeted a lifting of healthcare, nutrition and general care standards, supporting a pay raise for workers in the sector, and requiring care providers to report publicly on their spending.

Read an April 2022 report [PDF 403 KB] prepared by the KPMG member firm in Australia

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.