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Australian Federal Budget 2021

Posted 12 May '21

Australian Federal Budget 2021

The Federal Treasurer announced the budget for 2022 last night, some say it’s a boring budget with very few changes or surprises. It probably is and it demonstrates that the Government is feeling positive about the way the economy is improving. They would like to maintain the current momentum in business investments and continue to support job creation.

Some key aspects of the budget include:

  • Individuals
    • Low & middle income tax offset of up to $1,080 will be extended until 2022 year
    • Work test for voluntary contributions by individuals aged 67 to 74 is no longer required
    • Age limit for Downsizer contribution will reduce from age 65 to 60
    • Removal of $450 threshold under which employee is not entitiled to super contribution by their employer
    • Increase in the amount which can be withdrawn from super for a house deposit from $30k to $50k
    • Single parents with dependants are able to purchase their home with a 2% deposit without the extra cost of mortgage insurance
  • Businesses
    • Full write off of eligible assets will be available until 30 June 2023 for businesses with turnover up to $5 billion
    • Companies can use tax losses in 2020 to 2023 years and claim a refund on taxes paid in earlier years 2019 to 2022
    • Craft breweries and small distilleries will benefit from the increase in annual excise refund cap from $100k to $350k as of 1st July 2021

If you have any questions in relation to the recent budget announcement, please get in touch and we’d be more than happy to assist.

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