Treasurer Jim Chalmers delivered the 2022-23 Federal Budget on Tuesday 25 October 2022 which focused on “Building a better future”. There is a strong focus on cost-of-living relief, responsible budget repair, and building a stronger, more resilient economy. It is essentially a mini budget which has allowed the new Labor Government the opportunity to document its election commitments and reallocate spending decisions taken by the previous government.
From a new car Dealer perspective, there are no real surprises. At this stage there has been no suggestion that the instant asset write off/temporary full expensing measure will be extended beyond 2023. This budget has confirmed the Government’s willingness to support electric vehicle uptake with FBT deductions, tariff concessions, electrifying the Commonwealth fleet, spending on charging infrastructure and investment in the national electricity grid.
To address the skills shortage the Government has increased the skilled migrant intake and provided funding for apprentices in the ‘new energy sector’.
From a taxation perspective, the Luxury Car Tax is expected to raise more than $1.1 Billion in this financial year, while receipts from the passenger vehicle tariff are strong too.
We have prepared the attached Budget Briefing Paper for members which provides a summary and brief explanation of the measures that are relevant.
Further details are also available on the Government’s Budget Website.
