2021-2022 BUDGET UNVEILED

Treasurer Josh Fydenberg has said “Australia is coming back” as he unveiled the 2021 budget aimed at steering Australia out of the COVID-19 induced recession amid massive spending on essential services.

The 2021 budget is the next stage of the Governments economic plan to secure Australia’s recovery. Whilst we are not yet out of the pandemic, we are better placed than most other countries in the world to meet the economic challenges.

BUDGET SNAPSHOT

TAXATION

To support household income and create more jobs, the Government is delivering an additional $7.8 billion in tax cuts by retaining the low and middle income tax offset (LMITO) in 2021-22.

• The low and middle-income offsets will remain in place

• The offset is worth $1080 for individuals and $2160 for dual income couples.

INFRASTRUCTURE

The Government is building on its 10-year infrastructure pipeline by committing an additional $15.2 billion to infrastructure projects over the next ten years which will support over 30,000 jobs over the lives of those projects. This builds on the 100,000 jobs already being supported by projects currently under construction through the existing pipeline.

• A new $15.2 billion infrastructure spend was added in this year’s Federal budget

HOUSING

The Government is providing a further 10,000 places under the New Home Guarantee in 2021-22, specifically for first home buyers seeking to build a new home or purchase a newly built home with a deposit of as little as five per cent.

• First home buyers’ scheme to be boosted by another 10,000 places

• Single parents will be able to purchase a home with just 2% deposit

• First home super save scheme will allow first timers to access up to $50,000

SUPERANNUATION

• $450 minimum income threshold guarantee has been abolished

• Work test for people aged 67-74 who are seeking to top up their superannuation will be abolished

OTHER

• Government will reduce the $10,560 cap on childcare subsidy from July 1,2022 and increase the subsidy for subsequent children

• Packages in place to assist women and children leave a violent relationship with more accommodation and extra support to navigate the legal system

• Major spend to overhaul aged care and mental health sectors including:

  - $3.2 billion to be directed to aged card providers in the form a new basic daily fee supplement of $10 per resident per day

  - $3.9 billion to increase the amount of “care minutes” for residents in aged care facilities

  - $1.4 billion invested in treated services for Mental health support