Wondering how the 2021-2022 Federal Budget affects you? We’ve broken down the below key points from last night’s announcement.
As expected, the government is extending its scheme that will refund Australians up to $1,080 come tax time by one more year.
The low and middle income tax offset was a temporary measure designed to give households a bit more pocket money, with the biggest beneficiaries being people who earn between $48,000 and $90,000 a year.
Want to know how much you’re eligible to receive? Have a look at the below table to see where you sit.
The Government will increase the Medicare levy low-income thresholds for singles, families and seniors and pensioners for the 2021 income year, as follows:
- The threshold for singles will be increased from $22,801 to $23,226.
- The family threshold will be increased from $38,474 to $39,167.
- The threshold for single seniors and pensioners will be increased from $36,056 to $36,705.
- The family threshold for seniors and pensioners will be increased from $50,191 to $51,094.
For each dependent child or student, the family income thresholds increase by a further $3,597, up from the previous amount of $3,533.
- Temporary full expensing for businesses with a turnover below $5 billion extended for 12 months. Eligible businesses also able to deduct the full cost of assets, with loss carry back also extended
- Tax relief for around 1,000 small brewers and distillers.
- $2.1 billion in targeted support for aviation, tourism, the arts and international education providers
The Federal Government says these measures amount to $20.7 billion in tax relief over the next four years and will drive new investment.
- Economic growth will be 1.25 per cent in 2020-21 and reach a strong 4.25 per cent in 2021-22 before falling to 2.5 per cent the following year.
- Unemployment has defied doomsday predictions of 8 per cent or more and is predicted to be 5.5 per cent this year. Next year it will fall to 5 per cent and then 4.75 per cent in 2022-23.
- International borders will begin to re-open in 2022 but inbound and outbound travellers will remain at very low levels until the middle of 2022 at the earliest.
- Employers will be given an extra $1.5 billion to hire 100,000 apprentices and trainees in the next year as the government extends one of its most successful job creation programs for the second time.
- In total, over four years, 270,000 new apprentices and trainees are expected to be hired under this wage subsidy scheme by March next year.
WOMEN & FAMILIES
Faced with protests against sexual violence in Australia, allegations of parliamentary sexual assault, and waning popularity among female voters, the Morrison government has moved to increase funding for domestic violence prevention and improve access to childcare.
- An additional $1.1 billion will be spent on women’s safety measures, $261.4 million over two years in a new deal with the states to boost frontline family, domestic and sexual violence services.
- There’s $351.6 million in funding for new health measures including more cash for drugs to fight breast cancer, lung cancer and osteoporosis and for women’s health initiatives that cover maternal, sexual and reproductive health. There’s also money for endometriosis research and genetic testing for pregnant women.
- $1.7 billion over five years in extra money to cut the cost of childcare for families with two or more kids. Measures will boost the childcare rebate and remove the annual subsidy cap of $10,560 for high-income earners, aiming to get both parents back into full-time work by removing the disincentive of high childcare costs.
There is $17.7 billion over five years in response to the Aged Care Royal Commission report on abuse and neglect in the system, including:
- $6.5 billion for an extra 80,000 home care packages over two years, to help more people live in their homes for longer.
- $3.2 billion to cover a $10 per person, per day increase in payment to aged care providers.
- $3.9 billion to increase the number of “care minutes” each aged care resident receives per day to 200 minutes.
- Another $1.9 billion for the rollout of COVID-19 vaccines
- Another $1.5 billion for COVID-19 health care services, taking the total spend to $20 billion on the vaccine rollout and the health system more broadly.
- Government to invest in mRNA vaccine manufacturing capability onshore. Negotiations are under way with private companies
- $15.2 billion over ten years for infrastructure projects across the country.