Federal Budget 21-22
May 12, 2021
Key points in the Federal Budget 2021-2022
The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts.
Budget Highlights for Business
- Temporary full expensing measures extended until 30 June 2023 – eligible businesses can claim an immediate deduction for the total cost of depreciating assets.
- Temporary loss carry-back rules extended – eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.
- Administrative Appeals Tribunal given the power to pause or modify ATO Debt recovery action – reducing the legal fees and red tape for small business.
- Tax cuts – small to medium company tax rates will reduce to 25% from 1 July as planned.
- Recognition of occupational licences – reduced regulatory burden for people who work across multiple states.
- Digital Economy Strategy whole of government plan – funding for digital cadetships, innovation investment incentives, e-invoicing, cyber security, overhaul of myGov and building small to medium business digital capacity.
- Personal income tax cuts – the low and middle income tax offset continues for another year.
- Medicare levy - low-income thresholds increase.
- Self-education expenses – full cost of eligible self-education can be claimed.
Superannuation Highlights
- Changes to work test – no longer required for non-concessional contributions and salary sacrifice, but still required for those aged 67-74 who want to make personal contributions.
- Downsizer contributions - now allowed for people over 60.
- SMSF and residency – rules relaxed to allow concessional tax treatment for more people temporarily away from Australia.
- $450 monthly minimum for SGC - proposal to remove threshold for casual employees.
Other funding announcements include guaranteeing essential services, COVID-19 vaccine rollout, industry-specific measures, investment in employee training and mental health support measures.
For full details, visit Budget 2021-22.
Talk to us
about how you or your business can benefit from the budget announcements.
The Australian Taxation Office (ATO) has unveiled its compliance focus areas for the 2025 tax year, highlighting the importance of accurate claims and thorough record-keeping, particularly for small businesses and individuals.
The ATO recently published some ‘wild claims’ that business owners had tried to make for business expenses. But what CAN you claim and what CAN’T you claim? We have the answers.
Many business owners are reviewing their priorities and their work-life balance. Gallup reported that 39% of the owners they surveyed worked over 60 hours a week. How can you reclaim time and balance in your business?
Accountants don't just look after the financial side of your business. With our expertise behind your business development, we can help you turn your strategic ideas into real success stories.
We’re trading in uncertain times. But now’s the perfect moment to look at optimising your business. We’ve highlighted six key areas where you can improve your business efficiency.
#optimisation #strategy #businesstips
Are you using data insights to drive your operational efficiency? We’ve got the lowdown on five ways that data-based decision-making takes your business to new levels of productivity.
Putting data at the heart of your growth strategy is a no-brainer. We’ve broken down five ways that data-based decision-making helps you grab the best opportunities and grow at pace.
Analysing your customer data is a no-brainer in our data-driven times. We’ve shared five ways that data can help your sales, marketing and social media activity.
Data-based decision-making helps you take informed action and keep your cash in a positive position. We’ve signposted five key ways that data can improve your cashflow.
The 2025 Federal Budget was handed down on 25 March. Here's what it says.
