2021-22 Federal Budget Summary

Image of Canberra's Parliament House at dawn

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.

Key initiatives include:

  • Personal Tax Rates – LMITO extended to for the current year (2020-21) and 2021-22 FY
  • Immediate Asset Write Off – extended to 30 June 2023
  • Company loss-carry back measures – extended to 2022-23 FY
  • Individual Residency Tests – a new bright line test for 183 days or more
  • First Home Owners – schemes for single parents, loans, and savers
  • Child care subsidy – increases for family income and multiple children

It is also a human budget (cynics might say voter focused), 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.

There will also be a lot of money flowing through to the private sector to those that are capable of developing new technologies. Momentum and drive to develop new initiatives is a strong theme and in some circumstances the Government will offset the risk of those initiatives – if you are in the right sectors.

The $1.2 billion digital economy strategy seeks to rewrite Australia’s underlying infrastructure and incentivise business to boldly develop towards a digital future. The program is broad – from upskilling the workforce, the expansion of consumer digital rights, the development of SME digitisation, Government service delivery, to cybersecurity.

Beyond digital, co-funding and seed capital is available to those developing new technologies that reduce emissions, and grow new export markets and jobs in this sector.

Productivity is a key take-out with several measures targeted at encouraging industry to innovate and develop including the extension of full expensing and the loss carry back measures.

If you’re looking for more in depth information, on this page you’ll find links to download our Federal Budget Summary and you can view a recording of our Federal Budget Webinar.

Need further advice?

If we can assist you to take advantage of any of the Budget measures, please let us know. You can contact our tax specialists on 07 3023 4800 or at mail@marshpartners.com.au.

You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.

Need a comprehensive guide to the Budget? You can download one here:

Missed our Budget summary webinar? You can watch it here: