Federal Budget commentary 2021-22

Content Summary

- Budget
Expansionary budget provides more hits than misses
Media Release | 11 May 2021
Federal Budget 2021: Free spending budget for unprecedented times
The message is that while Australia has come through COVID-19 well, now is not the time for budget repair.
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Federal Budget 2021-22 reportPDF · 427.2 KB

Tax and superannuation overview

The budget maintains an expansionary approach, with significant new spending on infrastructure, health and aged care, and tax incentives to attract global talent and capital. However, it delivers little in the way of support for business digitalisation and climate change.

Eight key takeaways from the Federal Budget

Digital transformation

$1.2b Digital Economy Strategy including $124.1m to develop Australia’s AI capabilities and $28m to support the digitalisation of small business.

Superannuation

The $450 threshold for SG has been removed and the First Home Super Saver Scheme contribution has increased to $50,000. Downsizer Scheme expanded to people aged 60 and over. Work test for people aged 67-74 abolished.

Women's economic security

$1.9b women’s security package including $680 million to help prevent domestic violence and $1.7b for an increased Child Care Subsidy.

Taxation

LMITO offset extended for 2021-22. Temporary full expensing and loss carry-back extended to 2022-23. Changes to employee share schemes, tax residency rules and introduction of a patent box regime.

Health

Further $1.9b invested into the COVID-19 vaccination roll-out. A $2.3b package invested into mental health and suicide prevention services.

Aged care

An additional $17.7b over five years to transform the aged care system. Including $6.5b for additional Home Care Packages and $7.8b for a new funding model.