The 2021-22 Federal Budget, released on Tuesday evening, has been described as the “Balancing Act Budget” by some commentators due to the numerous demands that the government is trying to manage: the continued recovery from the COVID-19 pandemic, the ballooning deficit, investment in the long-term and the fact it is an election year!
Key initiatives from the budget include:
- Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets
- Changes to superannuation legislation, enabling greater investment in retirement
- 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
For further details in relation to the 2021-22 Federal Budget please refer to our comprehensive summary of key initiatives.