Federal budget 2021/22 at a glance

Paul Osborne
(Australian Associated Press)

THE FEDERAL BUDGET AT A GLANCE

KEY FORECASTS

Budget deficit of $106.6 billion for 2021/22 (5 per cent of GDP)

Economic growth to rise by 4.25 per cent in 2021/22

Unemployment to average 5 per cent

Inflation to average 1.75 per cent

Wage growth of 1.5 per cent

Net debt to rise to $729 billion

TAXATION

* Extra $7.8 billion in tax cuts for low and middle income earners, worth $1080 for individuals or $2160 for dual-income couples

* $25.1 billion of announced personal tax cuts will flow to households in 2021/22

BUSINESS

* Extension of temporary full expensing for an extra year to June 30, 2023.

* Temporary loss carryback extended to include the 2022/23 income year

* $1.2 billion aviation and tourism sector package

* $1.5 billion modern manufacturing strategy

HOUSING

* Extension of the HomeBuilder construction commencement period

* Further 10,000 places under the New Home Guarantee for first home buyers

* From July 1, 10,000 guarantees will be made available over four years for single parents to build a new home or buy an existing home with a deposit of as little as two per cent

* From July 1, 2022, First Home Super Saver Scheme voluntary contributions maximum amount will rise from $30,000 to $50,000

INFRASTRUCTURE

* Extra $15.2 billion in infrastructure spending over the decade

EDUCATION

* $2 billion over four years for early childhood education, supporting access to at least 15 hours a week for all children in the year before school

* 5000 extra short-course places at non-university higher education providers

THE BUSH

* $3.5 billion National Water Grid Fund

* $414.5 million biosecurity package

* $250 million available from the Building Better Regions Fund

WOMEN

* $1.1 billion for supporting victims of violence, including financial and legal help and emergency accommodation

* $1.7 billion extra for child care, increasing the subsidy for the second and subsequent child

HEALTH

* $2.3 billion for improved and expanded mental health care and suicide prevention

* Further $1.9 billion investment in the vaccine rollout, expanding the number of doses on order to 170 million

AGED CARE

* $17.7 billion to fund aged care reforms, including new laws and funding model

* 80,000 extra home care packages

INDIGENOUS

* $243.6 million for skills and jobs programs and improved access to remote government services

VETERANS

* Extra $460.4 million for veterans, including a royal commission into defence and veteran suicide

DISABILITY

* Extra $13.2 billion for the National Disability Insurance Scheme over four years

RETIREES

* Extension of pension loans scheme, allowing a single person to receive lump sum payments of up to $12,385 a year or $18,670 for a couple

* Minimum age of the downsizer superannuation contribution to be lowered from 65 to 60, allowing a post-tax contribution of $300,000 per person when they sell the family home

 

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Disclaimer

The information has been given in good faith and has been prepared based on information that is believed to be accurate and reliable at the time of publication. The information is general in nature and does not take into account your particular financial needs, circumstances and objectives.

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