Federal Budget 2021-22 update:
Federal Treasurer Josh Frydenberg has delivered his budget focusing on spending to help boost the economic recovery from the global pandemic.
Some key highlights are:
- Expected GDP growth forecast at 4.25%
- $161 billion deficit
- Forecasted fall in unemployment to 4.75% in mid 2023
- Extension of the low and middle income tax offset to 2022 worth up to $1,080 for individuals and $2,160 for dual income couples
- Removal of minimum $450 per month earnings for superannuation guarantee to apply
- Further investments in the vaccine rollout
- A women’s economic package to improve child care subsidies and funding to prevent violence
- $17.7 billion to improve aged care and $2.3 billion on mental health infrastructure and programs
- Concessional tax rates for patents to keep R&D in Australia and incentives for the digital economy
- Changes to Employee Share Scheme taxing points
- Extension of full expensing of assets and loss carry backs
- 5,000 additional higher education short courses
- Easier to understand and apply tax residency measures
For a comprehensive look, click here.
Financial advice
The Federal Budget 2021 has made it easier for older Australians to contribute to super if they sell their home or are no longer working.
There are also initiatives to assist first home buyers and single parents to buy a home and for older Australians to boost their retirement income by unlocking equity in their home.
Please click on the link to see a budget snapshot, infographic and video from our Obelisk TWB Financial Planning Director, Mike Ingham https://obelisktwb.com.au/budget-summary-2021/.
If you would like to discuss your situation, please contact Mike on mike@otwb.com.au.
As always, do not hesitate to reach out to us to discuss anything detailed in the summary and how it may impact you.
Chris, Damian, David & Maria
TWB Chartered Accountants
