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.

It is also a human budget, 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.

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's important to talk to your accountant to make sure you get it right. Please call us on 03 9836 2900 or email info@kidmanspartners.com.au.

Read the client guide here