Federal Budget 2021-22
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, 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 childcare subsidy increase and funding to prevent violence, and a Royal Commission into defence and veteran suicide.
Access your downloadable guide here PrimeAdvisory Federal Budget Update 2021-22.
We note that this year’s budget did not include as many tax and investment initiatives. However, the key points are:
For You & Your Family
- Low and middle income tax offset extended
- Medicare levy low income threshold
- $250 self-education expense reduction removed
- Work test repealed for voluntary superannuation contributions
- Expanded access to ‘downsizer’ contributions from sale of family home
- SMSF residency tests relaxed
Business & Employers
- Temporary full expensing extension
- Temporary loss-carry back extension
- Employee share scheme simplification
- $450 per month threshold for super guarantee eligibility removed
- Tax residency rules for trusts and limited partnerships
- New avenue for small business to ‘pause’ ATO debt recovery
We’ll keep you up to date as the detail of these measures comes to hand. Happy reading!
Get in touch
The team at PrimeAdvisory are available to assist you to capitalise on any of the Budget measures or minimise your risk.
If you have any questions, please don’t hesitate to contact us on 02 9415 1511.