The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn), an impending election, and the need to invest in the long term.
It is also a human budget (cynics would say voter focussed), with $17.7 billion dedicated to aged care, more money in the pockets of low income earners, the COVID vaccine rollout, $2 billion for mental health, a women’s economic package, including a child care subsidy increase and funding to prevent violence, and a Royal Commission into defence and veteran suicide. Key initiatives include:
- Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets
- Introduction of a ‘patent box’ offering tax concessions on income derived from medical and biotech patents
- Tax and investment incentives for the digital economy
- Extension of the low and middle income tax offset
- Child care subsidy increase for families with multiple children
- $17.7 billion over 5 years to reform aged care
- $2.3 billion on mental health infrastructure and programs
- New and extended home ownership programs for first home owners and single parents
We’ll keep you up to date as the detail of these measures comes to hand. Click below for a full rundown of the Government’s Federal Budget for 2021-22.
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As always, if you would like to engage with us, or would like further information about the 2021-20 Federal Budget, please get in touch with one of our experienced Advisors. We would be more than happy to have a No Obligation chat. Also, should you have any other queries, please contact our office on 07 3849 5924, or drop us a line.