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On Tuesday 11 May 2021, Treasurer Josh Frydenberg handed down the 2021-22 Federal Budget. 

The media provides wide coverage of the annual event but the detail is often glossed over. As always, you can trust the FMA team to be informed and across the relevant measures for our clients. In this special update we include a link to our 30 page Budget Report which analyses the key budget measures and when we can expect them to come into effect.

Read on for a quick summary and make sure you click the blue button below for our comprehensive Budget Report.

Summary

The 2021-22 Federal Budget deficit is $161 Billion, falling to $57 Billion in 2024-25 and net debt predicted to peak at $980.6 Billion (40.9% GDP) by June 2025.

The Federal Budget includes bold GDP growth forecast of 4.25% in 2021-22 with unemployment forecast to fall to 4.75% in mid 2023.

FMA 2021-22 Federal Budget Report

Please use the link below to access our full client guide on the 2021-22 Federal Budget. 
2021-22 Budget Report
Please note, this guide is general in nature and should not be relied on as advice to you. The various budget measures will apply differently for each client and may change before becoming law. It is important that you understand how your specific circumstances are impacted and seek our professional advice to understand what assistance can be obtained.

For Business

Key tax measures for businesses include:
  • Temporary Full Expensing (Instant Asset Write Off) extended to 30 June 2023
  • Loss carry back scheme extended to 2023 
  • Change to taxing point for employee share schemes 
  • Implementation of the SME Recovery Loan Scheme
  • Self-assessment of effective lives for intangibles 

For Individuals

Key tax measures for individuals include: 
  • Increasing the Medicare Levy for low-income thresholds
  • Retention of the Low and Middle Income Tax Offset (up to $1,080 tax offset) 
  • Childcare reform 
  • New individual residency test 
  • Removal of the non-deductibility of the first $250 of self-education expenses

Superannuation

Key tax measures on superannuation include: 
  • Abolishment of the $450 minimum monthly threshold for Super Guarantee 
  • Downsizer contributions expanded to those over 60 and selling an eligible main residence property 
  • Work test abolished for individuals aged 67-74 wanting to make voluntary superannuation contributions 
  • Relaxed residency rules for members of SMSF's temporarily relocating overseas 
  • First Home Super Saver Scheme amendments

Here to Help

Looking for advice on how to make the most of the budget changes? 

Contact our office on +61 2 9540 6888 or via email at info@fmapartners.com.au
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