D’Omkara – Federal Budget 2021
The 2021-22 Federal Budget is a balancing act between a better-than-anticipated deficit of $106 billion, an impending election, and the need to invest for the long term.
It is also a human budget, although cynics might say voter-focused, with $17.7 billion dedicated to aged care, more money in the pockets of low-income earners, the COVID-19 vaccine rollout, $2 billion for mental health, a women’s economic package including an increased child care subsidy and funding to prevent violence, and a Royal Commission into Defence and Veteran Suicide.
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 biotechnology 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 five years to reform aged care.
- $2.3 billion for mental health infrastructure and programs.
- New and extended home ownership programs for first-home buyers and single parents.
We have partnered with Knowledge Shop to bring you a comprehensive guide to the 2021-22 Federal Budget and its biggest winners.
If we can assist you in taking advantage of any of the Budget measures, or if you have any questions, please contact our office on (03) 9579 4450 or email us at team@domkara.com.au.
