The 2021-22 Federal Budget has been handed down by Treasurer Josh Frydenberg.
This 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 (cynics would say voter focussed), 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.
Key initiatives include:
Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets
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
We’ll keep you up to date as the detail of these measures comes to hand.