• Peer Wealth

Federal Budget 2021-22 Client Guide

Click here to view our Federal Budget 2021-22 Client Guide.

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 yeas 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.

View our Federal Budget 2021-22 Client Guide to read the update in detail.

Kind regards,

Peer Wealth

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