2021-22 Federal Budget Summary

The 2021-22 Federal Budget handed down on Tuesday night in Canberra 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.

The central theme of this Budget is to secure Australia’s economic rebuild. There are a number of initiatives that should support small businesses through recovery. But for those small businesses still constrained by closed borders, international travel is expected to remain low until mid-2022.

The key announcements included: 

• Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets
• Tax and investment incentives for the digital economy valued at $1.2 billion
• Extension of the low and middle income tax offset
• Deregulation agenda, using technology to reduce the time small businesses spend complying with regulations
• 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

Please contact us for clarification, or further advice, regarding any of the topics covered in this summary. To read the summary, please click here.

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