The October 2022 Budget was released by the Treasurer on Tuesday 25 October. The FSC team had two places in the Parliament House Budget lock-up and developed a comprehensive brief that was issued to members shortly after the Budget was released.
Key announcements from the Budget included:
- The Housing Accord
- Proposed tax changes, including to off-market buybacks, multinational taxation, and foreign exchange hedging
- The announcement of a review of the regulatory framework for Managed Investment Schemes
- Funding for Treasury and the Australian Accounting Standards Board (AASB) to develop climate reporting standards
- Confirmation of the extension of Paid Parental Leave (PPL) to 26 weeks. There was no announcement that the superannuation guarantee would be paid on PPL.
The Budget did not contain any announcements relating to superannuation non-arms’ length income (NALI), the replacement of the Offshore Banking Unit (OBU) regime, or the tax issues for life insurers with the implementation of AASB17.
At a macro level, the Government has previously flagged a significant improvement in the near-term Budget position, but a steady deterioration in Government finances as spending commitments in health, age care and the NDIS take effect. This forecast will place considerable pressure the Government to consider new revenue options in advance of the 2023 May Budget and whilst the Budget did not contain any new changes to superannuation contribution or taxation settings we expect this will become a focus over coming months.
Blake Briggs, CEO, Financial Services Council