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
Individuals
- 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
Business
- 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
Superannuation
- 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