2021-22 Federal Budget: Creating Jobs and Rebuilding the Economy

17 May 2021

On Tuesday 11th May, the Federal Budget was released with a focus on the next stage of the Government’s plan to secure Australia’s recovery from the COVID-19 pandemic.

The Government is proposing to do this with:

  • Personal income tax cuts
  • Business tax incentives
  • New apprenticeships and training places
  • More infrastructure
  • Additional funding for schools, hospitals, aged care, mental health and the NDIS

The theme of this Budget is creating jobs and rebuilding the economy in the form of:

  • $2.7 billion funding for more apprenticeships
  • $1.7 billion additional funding for childcare
  • $500 million for job training and reskilling


Key Budget Announcements


  • Retaining the low and middle income tax offset in 2021/22
  • Reducing compliance costs for individuals claiming self-education expense deductions
  • Modernising the individual tax residency rules
  • Increasing the Medicare levy low-income thresholds


  • Extending temporary full expensing
  • Extending temporary loss carry-back
  • Tax concession for Australian medical and biotechnology innovations
  • Employee Share Schemes - removing cessation of employment as a taxing point and reducing red tape
  • Increased rights for small business in relation to the collection of disputed debts
  • Supporting development of digital games
  • Tax relief for brewers and distillers
  • ATO early engagement service
  • Changing residency rules for trusts and limited partnerships


  • Repealing the work test
  • Expanding access to downsizer contributions
  • Removing the $450 per month threshold for superannuation guarantee eligibility
  • Relaxing residency requirements for SMSFs
  • First Home Super Saver Scheme - increasing the maximum releasable amount to $50,000

Non Tax Related Measures

  • Providing support for the health system and delivering a comprehensive vaccination program
  • Extension of construction period for HomeBuilder scheme
  • New Home Guarantee Scheme
  • Increasing child care subsidy
  • Increase in Jobseeker
  • Increased funding for pest control

Read more >