Posted on Tuesday, May 18th, 2021
The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit of $106 billion, an impending election, and the need to invest in the long term.
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 have summarised and condensed information from the Budget in the following report.