Treasurer Josh Frydenberg handed down the 2021-22 Federal Budget on 11 May 2021, heralding the post-pandemic economic recovery.
A key focus of the Budget is economic recovery and delivering more jobs to Australians. It is estimated that this Budget will help to create more than 250,000 more jobs by the end of 2022-23.
From a tax perspective the Budget contains a range of changes which we have outlined in our detailed report. However, we note that yet again the Government has not taken the opportunity for major tax reform.
The budget delivers a number of measures, supporting the drivers of growth, such as an additional $7.8 billion in tax cuts for low- and middle-income earners, worth up to $1,080 for individuals or $2,160 for dual income couples.
Businesses will have an additional year of claiming the full cost of eligible depreciating assets under the temporary full expensing provisions which will be extended by 12 months to 30 June 2023. In addition, companies will also have an additional year to claim a loss carry back which has also been extended by 12 months to 30 June 2023.
The budget provides additional measures for COVID-related causes including commitments to investing a further $1.9 billion in the COVID-19 vaccination roll-out.
View our 2021-2022 Federal Budget Report here.