Federal Budget Insights
As we now allow ourselves the indulgence of thinking about a post-pandemic world, the goal of the 2021 Federal Budget is to support our economic recovery.
Following last year’s delayed Budget, a number of support measures, like JobKeeper and the Cashflow Boost, have now concluded. Other support programs continue, and some have been extended, but will eventually wind down.
We set out a summary of the key measures announced, and what they mean for you.
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Talk to your Nexia Advisor about what any of the Budget announcements mean for you or your business.
Key Highlights
Personal Tax
$1,080 Low-and-Middle-Income Tax Offset extended for an additional year to 30 June 2022.
Australia’s Digital Future
$1.2 billion to grow our future as a modern and leading digital economy.
Superannuation Contributions
Abolition of the work test requirement for individuals aged 67 to 74.
Downsizer Contributions
Eligibility age reduced from 65 to 60.
Child Care
Increased subsidy to improve workforce participation.
Medical & Biotech Patent Income
Special 17% tax rate for eligible companies.
Small Brewers & Distillers
Increased excise refund, with many no longer paying any excise.
Superannuation Guarantee Obligation
$450 per month income threshold to be removed.
Depreciation write-off
Temporary full deduction for the entire cost of depreciating assets extended to 30 June 2023.
Loss carry-back
Cash refund for carrying losses back to prior years’ tax liabilities extended to 30 June 2023.
Junior Miners
Additional $100 million for the Junior Minerals Exploration incentive.
Employee Share Schemes
Employees will no longer be taxed when ceasing employment.
For a comprehensive and detailed summary of the 2021 Federal Budget, make sure to see our highly anticipated Federal Budget Guide.
Questions?
To discuss the budget in more detail and how it may impact your personal or business situation, contact your local Nexia Advisor.