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.
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