MP+ 2021-22 Federal Budget Update

MP+ 2021-22 Federal Budget Update

As the Morrison government hands down another Federal Budget, a mere 7 months since its last, what we’re seeing is largely what we expected – more COVID-combatting items, an extension of key measures brought in last year, and a roadmap to economic recovery fuelled by investment and job creation. Steering the country through the pandemic is still the primary motivator behind much of the Budget, and there is a noticeable lack of long-term reform.

For business owners, there are some important inclusions in this year’s Federal Budget, including targeted support for some of the industries impacted heavily by the COVID-19 pandemic, further commitment from the Government to the JobTrainer scheme, significant investment in digital infrastructure, skills and cybersecurity, immediate deductions for investment in capital assets,

Some important measures focusing more on the average Australian – including the extension of tax offsets for low- and middle-income earners, aged care reform, the rollout of the COVID vaccine, childcare subsidies, and mental health investment among others – may be viewed cynically given we’re not far out from the next Federal election, but the importance of these inclusions in the Budget cannot be understated.

Note that these Budget measures are subject to the passage of legislation, though it appears likely at this stage that no issues with that should arise.

There is a lot to digest in this Budget – even outside of the measures we discuss below. As such there are many critical considerations that will need to be made in the areas of accounting, taxation, bookkeeping, superannuation, and finance. At MP+ we’re dedicated to helping our clients make the most of the measures announced in the budget and look forward to the period of growth ahead.

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The information contained herein is provided on the understanding that it neither represents nor is intended to be advice or that the authors or distributor is engaged in rendering legal or professional advice. Whilst every care has been taken in its preparation no person should act specifically on the basis of the material contained herein. If assistance is required, professional advice should be obtained.

The material contained in the Budget 2021-22 Update should be used as a guide in conjunction with professional expertise and judgement.  All responsibility for applications of the Budget 2021-22 Update and for the direct or indirect consequences of decisions based on the Budget 2021-22 Update rests with the user. McKinley Plowman, directors and authors or any other person involved in the preparation and distribution of this update, expressly disclaim all and any contractual, tortious or other form of liability to any person in respect of the Budget 2021-22 Update and any consequences arising from its use by any person in reliance upon the whole or any part of the contents of this guide.