What you need to know about the budget for your personal tax return

On the 29th March, the treasurer delivered the federal budget for 2022-2023.

You might be wondering how this year’s budget might make a difference to your tax return.

Here are some of the changes that might affect your income tax:

  • Low and middle income earners will receive an added one-off tax offset payment of $420. This means all low and middle income earners will receive a maximum offset benefit of $1500. It will only be available in the 2022 financial year.
  • The Medicare levy low-income threshold has been increased, which means more low income earners will be exempt from paying the Medicare levy.
  • The costs of taking a COVID-19 test needed to attend work will be tax deductible from 1st July 2021. This means you can claim the cost of any RATs or PCR tests you have purchased to go to work in the 2022 financial year.

Want to learn more?

For more information about the 2022/23 budget, please go to the Federal Budget website.

If you’d like to know more about how the budget might affect you and your tax return, or if you have any other questions, please get in touch! Call us on 02 9831 8848, or email info@jmaccounting.net.au