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Ashfords 2021-2022 Australian Federal Budget Review

 

2021/22 Federal Budget: The Most Important Parts

The 2021 Federal Budget night has once again come and gone. The Government has delivered a large budget deficit designed to drive employment growth, while also allocating increased funding to social programs.
 
Instead of a comprehensive look at all the changes that were made, we’ve compiled some of the more important key points to come out of the 2021/22 Federal Budget.
 

Highlights

Individuals:

  • Extension of the Low-and-Middle-Income Tax Offset: An additional $7.8 billion in tax cuts for low- and middle-income earners, worth up to $1,080 for individuals or $2,160 for dual income couples has been extended for a further year.
  • Individual tax residency rules: Will be simplified and replaced with a new modernised test.
  • Improving the Employee Share and Option Plan rules: This proposed change will remove the cessation of employment as a deferred taxing point. This means that employees leaving their employment will not be subject to tax on their shares and options at that time.
 
Business:
  • Full Expensing and Loss Carry Back Extended to 2023: Measures to help small business, beginning with a one-year extension to the asset full expensing and temporary loss carry-back tax provisions (provided these proposed changes are legislated). This is estimated to deliver a further $20.7 billion in tax relief over the forward estimates to support business investment and create jobs.
  • Digital Economy: Investment of $1.2 billion in Australia's future through the Digital Economy Strategy to:
  • ATO Debt Recovery Actions: Small business entities (including individuals carrying on a business) with an aggregated turnover of less than $10 million a year are able to apply to the AAT to pause or modify ATO debt recovery actions.
 
Other:
  • Child Care: Reducing the cost of child care and introducing the potential for long term funding certainty for preschool.
  • Disability Spending: Supporting people with disability by fully funding the National Disability Insurance Scheme (NDIS) with an additional $13.2 billion.
  • Aged Care: Providing $17.7 billion to fund aged care reforms and ensure older Australians are treated with respect, care and dignity.

Of course, there are many other items that came out of last night’s Federal Budget, many of which will undergo further debate in the coming weeks. Hopefully, the Government addressed some of your concerns.          

 


 

If you require more information on the 2021-22 budget or further clarification around what relates to your business, please do not hesitate to contact your Ashfords advisor on 03 9551 2822


 

Please note: the information contained in our articles is general in nature and does not address the circumstances of any particular individual or entity. We endeavor to provide accurate and timely information, however cannot guarantee that it will continue to be accurate in the future. Always obtain appropriate professional advice for your circumstances . For more information or tailored advice, please contact your Ashfords advisor.

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