The Treasurer, the Honourable Josh Frydenberg MP, delivered the Government's 2021-22 Federal Budget this evening.
The continuing impacts of COVID-19 led to a budget deficit of $52.7 billion and the overall deficit has reached $161 billion (estimated to fall to $57 billion in 2024-25). Unemployment numbers were much better than originally feared at the height of the pandemic with the unemployment rate reaching 5.6%. In addition, net debt increased to $617.5 billion (30.0% of GDP) this year and the net debt is estimated to peak at $980.6 billion (40.9% of GDP) in June 2025.
The Government announced significant funding for infrastructure projects and also made significant commitments to aged care and mental health.
From a tax perspective, the low and middle income tax offset for individuals has been extended. In perhaps the most significant change to individual taxation in recent times, the Government has also announced that it will 'modernise' the tax residency provisions for individuals. For businesses, some of the changes introduced in last year’s Budget have been extended for an additional 12 months to 30 June 2023 which include the temporary full expensing provisions for businesses, and the loss carry back provisions for companies. Our National Tax Committee have analysed the budget papers, and prepared the following summary of the major Budget announcements.
A full report of the Budget will follow in due course.
Download the snapshot here.
View the snapshot translated to Chinese here.
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