Key points in the Federal Budget 2021-2022

The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts.  

Budget Highlights for Business

• Temporary full expensing measures extended until 30 June 2023 – eligible businesses can claim an immediate deduction for the total cost of depreciating assets.
• Temporary loss carry-back rules extended – eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.
• Administrative Appeals Tribunal given the power to pause or modify ATO Debt recovery action – reducing the legal fees and red tape for small business.
• Tax cuts – small to medium company tax rates will reduce to 25% from 1 July 2021 as planned.
• Recognition of occupational licences – reduced regulatory burden for people who work across multiple states.
• Digital Economy Strategy whole of government plan – funding for digital cadetships, innovation investment incentives, e-invoicing, cyber security, overhaul of myGov and building small to medium business digital capacity.

Budget Highlights for Individuals

• Personal income tax cuts – the low and middle income tax offset continues for another year.
• Medicare levy low-income thresholds increase
• Self-education expenses – full cost of eligible self-education can be claimed.

Superannuation Highlights

• Changes to work test – no longer required for non-concessional contributions and salary sacrifice, but still required for those aged 67-74 who want to make personal contributions.
• Downsizer contributions – now allowed for people over 60.
• SMSF and residency – rules relaxed to allow concessional tax treatment for more people temporarily away from Australia.
• $450 monthly minimum for SGC – proposal to remove threshold for casual employees.

  Other funding announcements include guaranteeing essential services, COVID-19 vaccine rollout, industry-specific measures, investment in employee training and mental health support measures. For full details, visit Budget 2021-22. Talk to us about how you or your business can benefit from the budget announcements. If you would like to arrange a time to have a chat please feel free to book a time or make contact via the Contact Us page of the website. You can also send me an email to tina@runningthenumbers.com.au.

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If you would like to arrange a time to have a chat please feel free to book a time or make contact via the Contact Us page of the website. You can also send me an email to tina@runningthenumbers.com.au.

We look forward to working with you.