The Balancing Act Budget: Budget 2021-22
The 2021-22 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 homeownership programs for first homeowners and single parents
The Collins Hume team are available to assist you to capitalise on any of the Budget measures or minimise your risk. As always, the detail is important so please let us know if we can assist. We'll keep you up to date as the detail of these measures comes to hand.