fbpx

Budget 2021-22:

The Balancing Act Budget

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.

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

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.

 

There will also be a lot of money flowing through to the private sector to those that are capable of developing new technologies. Momentum and drive to develop new initiatives is a strong theme and in some circumstances the Government will offset the risk of those initiatives – if you are in the right sectors.

 

The $1.2 billion digital economy strategy seeks to rewrite Australia’s underlying infrastructure and incentivise business to boldly develop towards a digital future. The program is broad – from upskilling the workforce, the expansion of consumer digital rights, the development of SME digitisation, Government service delivery, to cybersecurity.

Beyond digital, co-funding and seed capital is available to those developing new technologies that reduce emissions, and grow new export markets and jobs in this sector.

 

Productivity is a key take-out with several measures targeted at encouraging industry to innovate and develop including the extension of full expensing and the loss carry back measures.

 

If we can assist you to take advantage of any of the Budget measures, or to risk protect your position, please let us know.  But in the meantime please feel free to download our budget wrap up here.

 

Leanne Apiata, CA
LA Accountants
PO Box 580, Cleveland QLD 4163
leanne@laaccountants.com.au

More News

69 Marketing strategies to get leads

69 Marketing strategies to get leads

69 Marketing strategies to get leadsWith advertising being such an important part of attracting a lead, we have put together 69 different marketing strategies that can be implemented.  Although some methods listed below are more for building brand recognition such as...

read more
SMSF Tax Readiness

SMSF Tax Readiness

SMSF tax readinessHaving your own SMSF brings with it a lot of responsibility when you are the Trustee. Not only are you trying to maximise a good return on the investments you need to be on top of all the rules to ensure your SMSF remains a complying fund. Here are...

read more
Small Business Tax Ready

Small Business Tax Ready

Small business tax readyWe all want to legally reduce tax as much as we can so if you are a Small Business Entity here is a quick list of my top 10 to do before 30 June.  However, don’t spend money just to save tax, make sure it is an expense that needs to be outlaid....

read more

Feel Free To Call

Feel free to call on 07 3155 6596 if you would like to know more or view our services for more information.
Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!