On Tuesday night, Treasurer Josh Frydenberg handed down the much anticipated 2021/22 budget. Here is a quick overview of what’s in it for business owners and individuals:
Business owners will be pleased to see that various popular business measures introduced in last year’s budget have been extended by another year. These include the full expensing of eligible depreciable assets acquired, and the loss carry back offset, allowing certain losses to be deducted against earlier taxed profits to create a possible tax refund.
For Individuals, the Government will provide $782M over 4 years to assist with increasing home ownership participation via funding to the HomeBuilder program, support to single parents entering the housing market with a limited deposit under the Family Home Guarantee program and extending support under the first home loan deposit scheme. In addition, the low and middle income tax offset has been extended for another year.
Superannuation measures include from 1 July, 2022 benefits for individuals aged 67 to 74 who will no longer be required meet the work test when making or receiving non concessional contributions, subject to existing contribution caps. Also from 1 July 2022 the eligible age to make downsizer contributions into super will be reduced from 65 years of age to 60. The longstanding superannuation guarantee threshold of $450 per month is intended to be removed subject to the successful passage of legislation to Royal assent.
It’s a big spending budget that’s being described as having ‘something for everyone’ – funding for aged care, the arts and major infrastructure projects.
For our complete 2021/22 Federal Budget Summary click the link below.